Search results for "wage"

Employment sector and pay gaps: Genetic and environmental influences

2012

This paper examines the role of genetic factors and shared environment in explaining the choice of working in the public sector and public-private sector pay gaps. The analyses are done using data for Finnish twins that span the period from 1990 to 2004. The data are based on two sources. The first data are Finnish Twin Cohort conducted by Department of Public Health in University of Helsinki. These data have been matched with the Finnish Longitudinal Employer-Employee Data (FLEED) kept by Statistics Finland. The standard behavioural genetics decomposition and DF (DeFries and Fulker 1985) analyses indicate that public sector employment is broadly influenced by the genetic factors by around …

Seniority rules, worker mobility and wages : evidence from multi-country linked employer-employee data

2018

We construct multi-country employer-employee data to examine the consequences of last-in, first-out rules. We identify the effects by comparing worker exit rates between different units of the same firms operating in Sweden and Finland, two countries that have different seniority rules. We observe a relatively lower exit rate for more senior workers in Sweden in the shrinking firms and among the low-wage workers. These empirical patterns are consistent with last-in, first-out rules in Sweden providing protection from dismissals for the more senior workers among the worker groups to whom the rules are most relevant. Similarly, we observe a steeper seniority-wage profile in Sweden, suggesting…

Technological change and wage premiums: historical evidence from linked employer-employee data

2013

Abstract This study analyses the impacts of a technological change (the steam engine) on wage premiums. Using historical employer–employee panel data, we found that steam technology had both new skill-demanding and skill-replacing aspects. The former manifested itself as an increase in the demand for high-skilled engineers, the latter in a decline in the demand for intermediate-skilled, able-bodied seamen and an increase in the demand for unskilled engine room operators. Our panel data analysis, which controls for unobserved heterogeneity, implies that high-skilled labourers in abstract tasks and unskilled labourers in manual tasks improved their wage positions relative to intermediate-skil…

Education and skill mismatches: wage and job satisfaction consequences

2013

PurposeThis paper aims to highlight the relevance of examining education and skill job‐worker mismatches as two different, although simultaneous, phenomena of the labor market. Most previous literature does not take into account skill mismatch, and a number of papers deal with both kinds of mismatches as equivalent.Design/methodology/approachSpanish data from the European Community Household Panel (ECHP) survey for the year 2001 are used to examine the degree of statistical association between both education and skill mismatches, and to estimate wage equations as well as job satisfaction equations, considering satisfaction with pay, with the type of job and overall job satisfaction, in orde…

The power of the economic outlook : an ideational explanation of the distinct pattern of Finnish wage setting within the Nordic context

2022

Industrial relations scholars are paying increasing attention to the role of ideas in explaining shifts in bargaining systems and wage policies. This article contributes to this growing body of literature by conducting a meso-level analysis of the uses and impacts of ideas in wage regulation policy processes in coordinated market economies. Through our in-depth case study of the Finnish policy process leading to the Competitiveness Pact of 2016, we argue that certain ideas – which we call the ‘economic outlook’ – prescribed and legitimized exhausting institutional resources in wage regulation and enabled temporary consensus among divergent interests regarding wage policy. The economic outlo…

Round Table. Nordic unions and the European Minimum Wage Directive

2022

Wage Cyclicality under Different Regimes of Industrial Relations

2010

Since there is scant evidence on the role of industrial relations in wage cyclicality, this paper analyzes the effect of collective wage contracts and of works councils on real wage growth. Using linked employer-employee data for western Germany, we find that works councils affect wage growth only in combination with collective bargaining. Wage adjustments to positive and negative economic shocks are not always symmetric. Only under sectoral bargaining there is a (nearly symmetric) reaction to rising and falling unemployment. In contrast, wage growth in establishments without collective bargaining adjusts only to falling unemployment and is unaffected by rising unemployment.

Flexible Wage Contracts, Temporary Jobs, and Firm Performance: Evidence From Italian Firms

2013

This study focuses on the effects of decentralized wage schemes and temporary forms of employment on firm performance. The effect of monetary incentives on workers' effort and firm performance is a central topic in economics. According to the principal-agent paradigm, firms (the principal) have to link employees' remuneration schemes to any verifiable indicator of performance to avoid opportunistic behavior. The empirical evidence shows that financial incentives have the potential to exert strong effects on indicators of firm performance, such as productivity and worker absenteeism, although the degree of effectiveness of such schemes varies significantly according to the institutional/econ…

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…

Public sector wage premium and output volatility in the European Union

2018

This study seeks to uncover the role played by the public sector wage premium in explaining the output volatility. Furthermore, the study also explores the factors that might substantiate the cross-country differences in the volatility of the public sector wage premium. Using cross-sectional regression analysis for the European Union countries, the findings indicate that more volatile public sector wage premium is associated with higher fluctuations in the private sector employment and less stable growth. Findings also suggest that volatility of the public sector wage premium tends to be larger in countries with smaller governments and in countries where collective bargaining is the predomi…