In this paper we estimate the parameters of the traditional dynamic labor demand model. We base our empirical analysis on information provided by a monthly survey for the Brazilian manufacturing sector (PIM/IBGE) for the period 1985-1999. Since non-stationarity evidence was found, we also estimate cointegration relations and the corresponding vector error correction models (VECM). This estimation incorporates the restrictions imposed by Euler equations of quadratic linear models as shown in Dolado et al. (1991). Estimated values for product elasticity, in the short run, vary from 0,025 to 0,037 according to the specification. Estimated values for wage elasticity, in the short run, vary from 0 to -0,026. In the long run, the estimation range for both parameters is much wider, depending on the specification used.
