Search results for "jel:J64"
showing 8 items of 8 documents
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…
Employment protection : its effects on different skill groups and on the incentive to become skilled
2005
Summary Employment protection affects labour market outcomes and hence the incentive to acquire skills. Using a matching model with two education levels in which workers decide ex-ante on their skill formation, it is shown that employment protection can raise the fraction of skilled workers. This will be the case if workers obtain a sufficiently large fraction of the rent created by skill formation. Furthermore, it will be shown that high-skilled workers face shorter unemployment duration and lower dismissal probabilities.
Financing Unemployment Benefits: Dismissal versus Employment Taxes
2006
This paper investigates the effects of using dismissal taxes to finance unemployment benefits. We compare dismissal and employment taxes in a model with search frictions. Employment taxes give rise to externalities because firms do not take into account the effects their dismissal decisions have on others. By introducing dismissal taxes to finance unemployment insurance, these externalities can partly be internalized. Taking into account the budget of the unemployment insurance, employment taxes can be reduced by more than necessary to offset the adverse effect of dismissal taxes on the firm value. The introduction of dismissal taxes leads to higher job creation and lower unemployment, in c…
Unemployment Transitions to Stable and Unstable Jobs Before and During the Crisis
2014
Using administrative records data from Spanish Social Security, we analyse the pattern and the determinants of individual unemployment benefit spell durations. We compare a period of expansion (2005-2007) and the recent recession (2009-2011), allowing us to determine the impact of the current crisis. In line with the duality that characterizes the Spanish labour market, we distinguish between exits to a stable job and exits to an unstable job. We estimate a Multivariate Mixed Proportional Hazard Model for each time period. We find similar effects of the crisis for stable and unstable jobs, which are particularly strong in the first year of the spell. Moreover, slight negative duration depen…
Matching inefficiencies, regional disparities and unemployment
2009
. In this paper we apply a stochastic frontier approach to examine how matching inefficiencies and regional disparities in structural factors contribute to regional and aggregate unemployment. Our results suggest that there would be a substantial decline in aggregate unemployment if (i) all local labour offices operated with full efficiency or (ii) they shared the same structure of job seekers and vacant jobs as the most favourable office. In the former case an increase in hirings would lower the average unemployment rate by 2.4 percentage points. In the latter case the decrease would be 1.4 percentage points. Further, we find that fixed effects are positively correlated with both a more f…
Testing for hysteresis in unemployment in OECD countries. New evidence using stationarity panel tests with breaks†
2006
This paper tests hysteresis effects in unemployment using panel data for 19 Organization for Economic Co-operation and Development (OECD) countries covering the period 1956–2001. The tests exploit the cross-sectional variations of the series, and additionally, allow for a different number of endogenous breakpoints in the unemployment series. The critical values are simulated based on our specific panel sizes and time periods. The findings stress the importance of accounting for exogenous shocks in the series and support the natural-rate hypothesis of unemployment for the majority of the countries analysed.
Gender differences in exit rates from unemployment: evidence from
2000
Exit rates from unemployment are analysed by distinguishing two destinations: employment and non-participation. Unlike most of the earlier empirical Finnish studies of transitions from unemployment, we allow for different behaviour of males and females. A database constructed from three register data files of the Employment Service of Vasa in 1996 is used. Results of the estimated duration models suggest that gender differences are foremost due to the closer attachment of men to the labour market, the family responsibilities affecting women, and the traditional gender structure of the Finnish labour market. Our results show that drawing conclusions when gender differences are not considered…
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.