Abstract

The purpose of this study is to look at this apparent increase in demand for fire protection services in the theoretical framework of derived demand. The theory of derived demand tells us that the demand for labor in a certain field is determined by the demand for the goods or services produced by that labor (Freeman, 1972). More specifically, we should expect to see a shift to the right of the demand curve for fire fighters from the increased demand for fire protection services since September Eleventh. This should lead to greater employment levels and higher wages in the labor market for fire fighters.

Section II gives the background of the increased demand for fire protection services since September Eleventh. Section III will follow by presenting the theory of derived demand. This will set up the hypothesis that employment numbers and wages for fire fighters should have increased after September Eleventh from the increased demand for fire protection services. Section IV will layout the model and data that will be used to test this hypothesis and Section V will examine the results obtained by testing our model so that we can draw conclusions and policy implications from them. Such implications could be quite useful to the Department of Homeland Security as well as local governments as they work to improve the preparedness of first responders to respond to and recover from potential acts ofterrorism.

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Economics

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Economics Commons

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