TY  - JOUR
AU  - Quandt,Richard E.
AU  - Rosen,Harvey S.
TI  - Is There Chronic Excess Supply of Labor?  Designing a Statistical Test
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 46
PY  - 1985
Y2  - April 1985
UR  - http://www.nber.org/papers/t0046
L1  - http://www.nber.org/papers/t0046.pdf
N1  - Author contact info:
Harvey S. Rosen
Department of Economics
Fisher Hall
Princeton University
Princeton, NJ 08544-1021
Tel: 609/258-4022
Fax: 609/258-6419
E-Mail: HSR@princeton.edu
AB  - In this paper we present and implement a statistical test of the hypothesis that the labor market has chronic excess supply. The procedure is to estimate a disequilibrium labor market model, and construct a test statistic based on the unconditional probability that there is excess supply each period. We find that the data reject the hypothesis of chronic excess supply. Hence, one cannot assume that all observations lie on the demand curve.
ER  -