Search results for "UNEMPLOYMENT"
showing 10 items of 312 documents
Youth Transition from School to Work in Spain
2001
Using a data set drawn from the Encuesta Socio-Demográfica conducted by the Instituto Nacional de Estadística in 1991, we analyze the labor market entrance of Spanish school leavers and the match between education and work at the early stages of working life. The empirical evidence shows that human capital exerts a strong influence on the duration of unemployment. With regard to the job match between education and work we find that young workers are more likely to be underutilized compared to their adult co-workers. Regression results indicate that people with higher education have, all else being equal, a lower probability of being overeducated and a shorter lenght of unemployment. They al…
Frictional and Non-Frictional Unemployment in a Labor Market with Matching Frictions
2016
Using the Mortensen and Pissarides model of a labor market with frictions, this paper proposes a new method, simpler than the one presented in Michaillat (2012), for decomposing unemployment into frictional and non-frictional (rationing) unemployment for a derived rigid wage-setting rule. We use it to compute the frictional and non frictional unemployment rate for two economies characterized by different labor market institutions, namely the US and the Spanish economy. For the entire period under study, the US frictional unemployment rate is around 36 per cent of total unemployment, whereas for Spain, approximately 20 per cent of all unemployment is due to frictions. This outcome may be exp…
RENT CREATION AND RENT SHARING: NEW MEASURES AND IMPACTS ON TOTAL FACTOR PRODUCTIVITY
2019
International audience; This analysis proposes new measures of rent creation and rent sharing and assesses their impact on productivity on cross-country-industry panel data. We find first that: (1) anticompetitive product market regulations positively affect rent creation and (2) employment protection legislation boosts hourly wages, particularly for low-skill workers. However, we find no significant impact of this employment legislation on rent sharing, as the hourly wage increases are offset by a negative impact on hours worked. Second, using regulation indicators as instruments, we find that rent creation and rent sharing both have a substantial negative impact on total factor productivi…
Job satisfaction as a unified mechanism for agent behaviour in a labour market with referral hiring
2016
This paper proposes to use job satisfaction (JS) as a unified mechanism for guiding agents' behaviour in the labour market. In the labour-market model presented here, JS affects agents' decisions on which vacancies to apply for, which of them to select in case of receiving several acknowledgements from firms and whether to quit the current job. The performance of the model depending on the structure of JS is studied. The model where JS depends on monetary (relative wages), social (relative number of friends), content and career components is compared with models where JS has only the first or the first two of these. It creates a more realistic firm size distribution and smaller duration of …
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 …
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…
Banking crises, labor reforms, and unemployment
2013
Abstract Using a sample of 97 countries spanning the period 1980–2008, we estimate that banking crises have, on average, a large negative impact on unemployment. This effect, however, largely depends on the flexibility of labor market institutions: while in countries with more flexible labor markets the impact of banking crises is sharper but short-lived, in countries with more rigid labor markets the effect is initially more subdued but highly persistent. These effects are even larger for youth unemployment in the short term, and long-term unemployment in the medium term. Conversely, large upfront, or gradual but significant, comprehensive market reforms have a positive impact on unemploym…
The determinants of post-compulsory education in Spain
2009
In this article we explain why Spain is at the bottom of the developed countries in secondary education. We have made use of extensive information contained in the ECHP supplemented with labour market data. We find that higher rates of unemployment diminish the probability of investing in post-compulsory education and this effect differs across the population. Our results suggest that a ‘poverty effect’ makes access more difficult to secondary education in Spain.