4A. Own-Wage Elasticity
Own-wage elasticity of demand for labor ? = the % change in employment due to a 1% change in the wage rate (? is eta).
E.g. ? = -0.5 ? employment ? 0.5% when w?1.0%
? = %?E / %?w where %? is % change
?= -1 if unit elastic demand -1 < ?< 0 if inelastic demand -?< -1 if elastic demand