Search results for "jel:J31"
showing 10 items of 11 documents
Technology and Labor Regulations: Theory and Evidence
2015
This paper shows that different labor market policies can lead to differences in technology across sectors in a model of labor saving technologies. Labor market regulations reduce the skill premium and as a result, if technologies are labor saving, countries with more stringent labor regulation, which bind more for low skilled workers, become less technolog- ically advanced in their high skill sectors, but more technologically advanced in their low skill sectors. We then present data on capital-output ratios, on estimated productivity levels and on patent creation, which tend to support the predictions of our model.
THE IMPACT OF THE ECONOMIC CRISIS ON THE ROMANIAN LABOR MARKET - A REGIONAL ANALYSIS
2012
The global financial recession reconfigured the economical structures of many countries and in this context the labor markets all around the world faced major salary cuts and job losses. The Romanian economy wasn`t an exception, and for a better understanding of its labor structures we have analyzed the interactions between some of the most representative and measurable indicators using a regional econometric model. The results show that the dynamics of the labor market changed once the economic crisis was installed and are still continuing to modify since the magnitude of this global phenomena was very powerful.
Does Commuting Reduce Wage Disparities?
2004
ABSTRACT This paper shows that in the Baltic countries, commuting reduces urban-rural wage and employment disparities and increases national output. To quantify the effect of commuting on wage differentials, two sets of earnings functions are estimated (based on Estonian, Latvian, and Lithuanian Labor Force Surveys) with location variables (capital city, rural, etc.) measured at the workplace and at the place of residence. We find that the ceteris paribus wage gap between capital city and rural areas, as well as between capital and other cities is significantly narrowed by commuting in some cases but remains almost unchanged in others. Different outcomes are explained by country-specific s…
The labour market consequences of self-employment spells:European evidence
2008
Hundreds of thousands of Europeans enter self-employment each year, but because self-employment spells are typically brief, many of them exit soon after entry. We examine how those who return to paid-employment fare on the labour market using the European Community Household Panel (ECHP). Like earlier evidence for the US, ours indicate that, in general, brief spells of self-employment do not increase average hourly earnings upon return to paid-employment. For highly educated men, an additional year of self-employment actually decreases their earnings by 4-5% relative to a year of continued wage employment. We also find that brief spells of self-employment are associated with increased proba…
The role of Institutions in explaining wage determination in the Euro Area: a panel cointegration approach
2016
Over the last 15 years, the evolution of labor costs has been very diverse across EMU countries. Since wages have important second-round effects on prices and competitiveness, and EMU countries do not have the tool of the nominal exchange rate to correct for such imbalances, understanding the determinants of the wage is a matter of increasing concern and debate. We estimate the equilibrium wage equation for the Euro Area over the period 1995-2011 using panel cointegration techniques that allow for cross-section dependence and structural breaks. The results show that the equilibrium wage has a positive relation with productivity and negative relation with unemployment, as expected. We also i…
The workers' value of the remaining employment contract duration
2005
We introduce and apply a method for estimating workers' marginal willingness to pay for job attributes employing data on job search activity. Worker's willingness to pay for the remaining duration of the employment contract is derived. We provide evidence that workers attach substantial value to the remaining contract duration. A temporary worker with a remaining contract of six months is willing to pay about 10% of the monthly wage to increase the contract by one month.This discussion paper has resulted in a publication in Economica, 2008, 75(297), 116-39.
Mobility, wages and gender across Europe
2012
In this paper, the socioeconomic and individual characteristics that favor mobility are analyzed. The stochastic frontier technique is used as an instrument of analysis to measure the differences that arise between the potential wage and the one that should be obtained for an individual with particular socioeconomic characteristics given his/her investment in human capital. A data panel of young workers who have been working at least for seven consecutive years is used for this analysis. The data set comes from the European Community Household Panel for the period 1995-2001. The results show that Spanish and Italian women have the higher changing probability; this high probability has a neg…
Public-private sector pay gaps in Finland: A quantile regression analysis
2011
This paper examines public-private sector wage differentials in Finland using a quantile regression method. We control for the endogeneity of the working sector and allow the returns of individual skills to vary between industries. The results suggest that men earn a premium of 3 percent in the public sector at the lower-end jobs. At the median and the upper end of the distribution, men’s pay gap is negative, varying between 5 and 10 percent. Women, in turn, always earn more in the public sector (4–10 percent), and the premium is highest at the upper end of the earnings distribution. (JEL: J31, J45) peerReviewed
Determinants of inter-regional migration in the Baltic countries
2003
We show that Estonia, Latvia and Lithuania despite small geographical size feature considerable and persistent regional disparities. Registered migration rates have declined dramatically since the last years of Soviet era, yet they are high by international standards. Evidence from regional inflows and outflows in Latvia and from Estonian labour force survey is used to show that regional unemployment and especially wage differentials, as well as demographic factors, have a significant impact both on gross and net migration flows. Age and education effects are consistent with predictions of the human capital model of migration. Unemployed persons, as well as commuters between regions, are si…
Heritability of Lifetime Income
2013
Using 15 years of data on Finnish twins, we find that 24% (54%) of the variance of women’s (men’s) lifetime income is due to genetic factors and that the contribution of the shared environment is negligible. We link these figures to policy by showing that controlling for education reduces the variance share of genetics by 5-8 percentage points; by demonstrating that income uncertainty has a genetic component half the size of its variance share in lifetime income; and by exploring how the genetic heritability of lifetime income is related to the macroeconomic environment, as measured by GDP growth and the Gini-coefficient of income inequality.