The impact of electricity prices on the number of workers : - A study in the Swedish manufacturing industry

Sammanfattning: This study investigates the impact of the price of electricity on the number of workers in the Swedish manufacturing industry. This study also investigates the effect of a “shock” in the price of electricity on the number of workers in the manufacturing industry. This study is using economic theory and earlier literature to try to explain the results obtained in this study. This study has found that a causality exists between the price of electricity and the number of workers in the manufacturing industry. The result from this study implies that an increase inthe price of electricity predicts a short-term negative effect on the number of workers. If the price of electricity is “shocked” with one standard deviation, everything else held constant, the number of workers decreases. This study has found that a causality exists between the price of electricity and the number of workers in the manufacturing industry. The result from this study implies that an increase inthe price of electricity predicts a short-term negative effect on the number of workers. If the price of electricity is “shocked” with one standard deviation, everything else held constant, the number of workers decreases.