Search results for "Econometric"

Monopolistic competition and different wage setting systems

2010

In this paper, we present a disequilibrium unemployment model without labor market frictions and monopolistic competition in the goods market within an infinite horizon model of growth. We consider different wage setting systems and compare wages, the unemployment rate, and income per capita in the long-run at firm, sector, and national (centralized) levels. The aim of this paper is to determine under which conditions, the inverted-U hypothesis between unemployment and the degree of centralization of wage bargaining, reported by Calmfors and Driffill [Economic Policy, 6, 14¿61, 1988], is confirmed. Our analysis shows that a high degree of market power normally produces the inverted-U shape …

DO LABOUR SOCIETIES PERFORM DIFFERENTLY TO COOPERATIVES? EVIDENCE FROM THE SPANISH BUILDING INDUSTRY

2012

: Labour Societies and Cooperatives are both Social Economy enterprises, but with noticeable differences, some of which are imposed by legislation in Spain. The aim of this paper is to study whether such differences affect their management capacity and, in particular, efficiency. In doing so, Data Envelopment Analysis techniques and the metafrontier approach proposed by O’Donnell et al. (2008) are used on a sample of Spanish Labour Societies and Cooperatives belonging to the building industry. Scores of technical efficiency and metafrontier ratios are computed at firm level and, as a novel contribution to existing literature in this field of research, at input-specific level. The main findi…

Contributions of the social economy to the general interest

1997

Do Scarring Effects of Low-Wage Employment and Non-Employment Differ BETWEEN Levels of Qualification?

2014

This study investigates how the effects of low-wage employment and non-employment on wage prospects vary depending on qualification. Based on theories on signalling effects, human capital and job search, we discuss why there may be heterogeneity in state dependence in both labour market states. We find that episodes of low-wage employment incur a significantly lower risk of future non-employment than episodes of non-employment for low-qualified workers. In contrast, for workers with a middle or high level of qualification the risk of non-employment is not significantly different when being low-paid instead of not employed.

Coordinated Punishment and the Evolution of Cooperation

2015

In this paper, we analyze a team trust game with coordinated Q1 punishment of the allocator by investors and where there is also a final stage of peer punishment. We study the effect of punishment on the reward and the investment decisions, when the effectiveness and cost of coordinated punishment depend on the number of investors adhering to this activity. The interaction takes place in an overlapping-generations model with heterogeneous preferences and incomplete information. The only long-run outcomes of the dynamics are either a fully cooperative culture (FCC) with high levels of trust and cooperation and fair returns or a non-cooperative culture with no cooperation at all. The basin of…

Tax Liability and Tax Evasion in a Competitive Labor Market

2005

In a competitive labor market, a change in the legal incidence of a tax on labor will not alter employment if tax obligations are fulfilled. However, this irrelevance result may no longer apply if taxes can be evaded. In particular, a shift from payroll to income taxes will lower employment. This will be the case if workers exhibit constant absolute risk aversion, have a utility function, which is strongly separable in income and the disutility from working, and the penalty for evasion is not proportional to the amount of taxes evaded. Accordingly, tax evasion opportunities can make the legal incidence of a tax on labor an important determinant of its economic incidence.

Fairness Considerations in Labor Union Wage Setting : A Theoretical Analysis

2012

We consider a theoretical model in which unions not only take the outside option into account, but also base their wage-setting decisions on an internal reference, called the fairness reference. Wage and employment outcomes and the shape of the aggregate wage-setting curve depend on the weight and the size of the fairness reference relative to the outside option. If the fairness reference is relatively high compared to the outside option, higher wages and lower employment than in the standard model will prevail. If hit by an adverse technology shock, the economy will then react with a stronger downward adjustment in employment, whereas real wages are more rigid than in the standard model. W…

Migration and imperfect labor markets: theory and cross-country evidence from Denmark, Germany and the UK

2014

We investigate the labor market effects of immigration in Denmark, Germany and the UK, three countries which are characterized by considerable differences in labor market institutions and welfare states. Institutions such as collective bargaining, minimum wages, employment protection and unemployment benefits affect the way in which wages respond to labor supply shocks, and, hence, the labor market effects of immigration. We employ a wage-setting approach which assumes that wages decline with the unemployment rate, albeit imperfectly. We find that the wage and employment effects of immigration depend on wage flexibility and the composition of the labor supply shock. In Germany immigration i…

Unemployment, taxation and public expenditure in OECD economies

2008

Abstract This paper considers the financing of productive public goods and social benefits through different types of taxes in a model with unemployment. We incorporate unemployment, caused by the wage-setting behaviour of a monopolistic union, in a neoclassical growth model which integrates a quite detailed structure of taxes used to finance productive public expenditures and social transfers and parameterizes the inefficiency of government to transform taxes into public goods or transfers. The main conclusion is that the relationship between unemployment and labour taxes critically depends on the degree of government efficiency and the unions' perception on how taxes determine the welfare…

Life cycle and housing decisions: a comparison by age cohorts

2013

The use of decomposition methodologies when the involved variable is continuous is not common in the literature. This article uses this methodology, together with other decomposition methodologies, to explain how age can influence on housing decisions. In particular, we use Spanish data to study whether the age of the householder plays a significant role in influencing household decisions with respect to housing tenure and demand. From the comparison of housing decisions between different groups of households classified by the age of the householders, we conclude that age plays the primary role in explaining the gap between households regarding tenure choice, while it shares its importance …