|
on Labour Economics |
| By: | René Böheim (Department of Economics, Johannes Kepler University Linz, Austria); Andrea Weber (Department of Economics, Institute for Advanced Studies, Austria) |
| Abstract: | We analyse the consequences of starting a wage subsidised job, "marginal employment", for unemployed workers. Marginal employment is a type of wage subsidy paid to unemployed workers and they do not lose their unemployment benefits if the wage is below a certain threshold. We ask if the unemployed who start marginal jobs face better labour market outcomes than those who do not work. A priori it is not clear if those who work in marginal employment improve their labour market status, e.g. by signalling effort, or worsen it by reduced job search effort. We select unemployed workers and investigate the effect of marginal employment on their labour market outcomes, by means of propensity score matching. Our results suggest that selection into marginal employment is "negative", i.e. workers with characteristics we usually associate with low-productivity are more likely to select into such jobs. The unemployed who start to work in marginal employment during their unemployment spell suffer a (causal) penalty for doing so, relative to their peers who do not. The penalty, in terms of less employment, more unemployment, lower wages, lessens over time but is still present after three years. |
| Keywords: | marginal employment; atypical employment; labour supply; propensity score matching |
| JEL: | J22 J64 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2006_12&r=lab |
| By: | Christian Holzner; Volker Meier; Martin Werding |
| Abstract: | The impact of a stronger work requirement for welfare recipients in a workfare program is studied in an efficiency wage model where a representative firm chooses its level of monitoring activities. A stricter workfare policy raises employment and monitoring activities. It typically increases profits and reduces the tax rate. The impact on the net wage is ambiguous. Utility levels of employed workers and welfare recipients may increase even if the net wage declines. The utility differential between these two groups of workers shrinks. |
| Keywords: | workfare, welfare, efficiency wages, monitoring |
| JEL: | H53 J41 J60 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1749&r=lab |
| By: | Jian-Ping Zhou |
| Abstract: | Over the last 15 years, the reforms of employment protection legislation (EPL) in European countries have mainly eased hiring and firing restrictions for temporary employment while leaving the strict EPL provisions for regular or permanent contracts unchanged. Recent reforms in France follow this pattern. Using a search-matching model, we argue that this type of partial reform is inefficient: easing restrictions on temporary jobs fosters both job creation and job destruction, but strict EPL discourages both. The overall impact on equilibrium unemployment is thus ambiguous, depending on the characteristics of the specific labor market. Simulations of the model, calibrated for the French labor market, suggest that the job destruction effect is stronger, thus raising the unemployment rate. |
| Keywords: | Unemployment , France , Labor markets , Economic models , |
| Date: | 2006–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:06/108&r=lab |
| By: | Stéphanie Jamet |
| Abstract: | With high unemployment, low participation of specific groups such as the low-skilled and those nearing retirement age, and relatively low average hours worked, France is far from using its full labour potential. Improving the labour market situation would not only increase living standards and growth potential but also reduce social exclusion and ease pressures on public spending. This paper analyses various characteristics of the French labour market that may explain the low utilisation of labour potential. It puts forward the need for a comprehensive reform of the labour market aiming at: i) shifting the burden of social protection in the labour market away from employers towards the state by reducing and streamlining employment protection legislation; ii) removing incentives that lead to early withdrawal from the labour market; iii) allowing employers and employees more freedom to negotiate working hours; and iv) improving efficiency in job placement services. |
| Keywords: | employment protection legislation, France, labour costs |
| JEL: | J30 J50 J65 J8 K31 |
| Date: | 2006–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:504-en&r=lab |
| By: | Roger Wilkins (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne and IZA Bonn) |
| Abstract: | Using information collected by the 2001 Household Income and Labour Dynamics in Australia (HILDA) survey, I investigate the factors associated with underemployment, defined as a situation where a part-time employed person would like to work more hours in order to increase income. Multinomial logit models are estimated of labour force status in which underemployment is distinguished from other part-time employment. Effects of a wide range of personal and neighbourhood characteristics are examined, including family background, employment history and local labour market conditions. Underemployment is found to have many predictors in common with unemployment, but also a number of differences. Additional models are estimated on employed persons only that investigate the job characteristics associated with underemployment. Relatively few job characteristics predict underemployment as distinct from other part-time employment. |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2006n16&r=lab |
| By: | Anabela Carneiro (CETE, Faculdade de Economia, Universidade do Porto); Pedro Portugal (Banco de Portugal and Universidade Nova de Lisboa) |
| Abstract: | This paper examines the long-term earnings losses of displaced workers in Portugal, using a nationally representative longitudinal linked employer-employee data set. The results show that four years after displacement the earnings of displaced workers remain around 9% (women) to 12% (men) below their counterfactual expected levels. The post-displacement earnings losses are mainly associated with the loss of tenure within the firm and, to a lesser extent, to the loss of sector-specific features. Furthermore, workers who experienced a spell of nonemployment are the most affected by job displacement. Finally, this study points to the importance of controlling for employers' characteristics in this type of wages-dynamic analysis, since there are systematic differences in earnings between displaced and non-displaced workers that stem from differences in firm characteristics. Ignoring them may confound the evaluation of the earnings losses. |
| Keywords: | Displacement, earnings losses determinants, firm characteristics |
| JEL: | J31 J63 J65 |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:por:cetedp:0607&r=lab |
| By: | Andrea Ichino; Enrico Moretti |
| Abstract: | In most Western countries illness-related absenteeism is higher among female workers than among male workers. Using the personnel dataset of a large Italian bank, we show that the probability of an absence due to illness increases for females, relative to males, approximately 28 days after a previous illness. This difference disappears for workers age 45 or older. We interpret this as evidence that the menstrual cycle raises female absenteeism. Absences with a 28-day cycle explain a significant fraction of the male-female absenteeism gap. To investigate the effect of absenteeism on earnings, we use a simple signaling model in which employers cannot directly observe workers' productivity, and therefore use observable characteristics – including absenteeism – to set wages. Since men are absent from work because of health and shirking reasons, while women face an additional exogenous source of health shocks due to menstruation, the signal extraction based on absenteeism is more informative about shirking for males than for females. Consistent with the predictions of the model, we find that the relationship between earnings and absenteeism is more negative for males than for females. Furthermore, this difference declines with seniority, as employers learn more about their workers' true productivity. Finally, we calculate the earnings cost for women associated with menstruation. We find that higher absenteeism induced by the 28-day cycle explains 11.8 percent of the earnings gender differential. |
| JEL: | J3 J7 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12369&r=lab |
| By: | Christoffel, Kai; Linzert, Tobias |
| Abstract: | In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions affect the transmission process of monetary policy. The model allows real wage rigidities to interact with adjustments in employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to an interest rate innovation depends on the degree of wage rigidity. Generally, more rigid wages translate into more persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation depends also on labor market fundamentals such as bargaining power and the flows in and out of employment. |
| Keywords: | Monetary Policy, Matching Models, Labor Market Search, Inflation Persistence, Real Wage Rigidity |
| JEL: | E31 E32 E52 J64 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdp1:4248&r=lab |
| By: | Philippe Méhaut (LEST - Laboratoire d'économie et de sociologie du travail - [CNRS : UMR6123] - [Université de Provence - Aix-Marseille I][Université de la Méditerranée - Aix-Marseille II]) |
| Abstract: | Finland and France share some common characteristics regarding the labour market situation and trends : a high level of unemployment (respectively 8.4% and 9.5%), a low rate of employment among the 55-65 and the 15-24 age groups (for the latter mainly due to a “full time” educational model), an ageing process with a growing level of retirements in the future (but with similar choices regarding the increasing age of retirement and level of provisions, and similar public policies regarding the decrease in early retirements), and young cohorts stable or slightly decreasing. In this context, forecasting labour demand and supply in the long run is a common concern, with the aim of producing some guidelines for labour market actors, for employment policy as well as for education and training policies. This paper will first outline some common trends and differences in the French experience regarding the forecasting tools. Then we will put the emphasis on common results and/or differences between the two countries. In the third part we will discuss the use of the forecasts' results mainly in the field of education and training policies. |
| Keywords: | Labour market; Education and training policies; Skill needs; Comparison; Finland; France |
| Date: | 2006–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00080198_v1&r=lab |
| By: | Jean-Marc Burniaux; Flavio Padrini; Nicola Brandt |
| Abstract: | There have been concerns that employment-enhancing reforms along the lines of the 1994 OECD Jobs Strategy could inadvertently lead to increased income inequality and poverty. This paper focuses on the impact of institutions and redistributive policies on inequality and poverty with the view of assessing whether a trade-off between better labour market performance and equity has taken place in OECD countries, notably in the 1990s. During this period, reductions of unemployment have been associated with rising wage dispersion for workers in most OECD countries. Nevertheless, no clear general trend appears for total disposable income inequality and relative poverty among the total population. These developments suggest that gains from higher employment have in general offset the impact of rising wage dispersion. A preliminary econometric analysis for the period 1978- 2000 fails to detect any robust relationship between labour market institutions/policies and inequality as measured by the Gini coefficient. Please note that annexes are only available on the OECD Economics Department Website at: www.oecd.org/eco/Working_Papers. <P>Performance du marché de l'emploi, inégalité des revenus et pauvreté dans les pays de l'OCDE <BR>Des inquiétudes ont été souvent exprimées par la suite selon lesquelles les réformes visant à stimuler l'emploi selon la base de l’Étude de l’OCDE sur l’Emploi publiée en 1994 pourrait en fait se traduire par une augmentation des inégalités des revenus et de la pauvreté. Ce document de travail a pour objet l'impact des institutions et des politiques de redistribution sur l'inégalité et la pauvreté avec la perspective d'évaluer dans quelle mesure un arbitrage entre un meilleur fonctionnement du marché de l'emploi et l'équité des revenus s'est manifesté dans les pays de l'OCDE, notamment, dans les années 90. Au cours de cette période, le chômage a été réduit dans une majorité de pays de l'OCDE et cela simultanément à une augmentation de la dispersion des salaires des travailleurs. Néanmoins, en ce qui concerne l'inégalité des revenus disponibles et la pauvreté relative au niveau de l'ensemble de ménages, il n'est pas possible de dégager une tendance générale. Il semblerait donc que les gains de redistribution associés à l'augmentation de l'emploi ont été suffisants, en général, pour compenser l'augmentation des inégalités salariales. Une analyse économétrique préliminaire pour la période 1978-2000 ne permet pas d'identifier des relations robustes entre les institutions et les politiques du marché de l'emploi, d'une part, et l'inégalité des revenus mesurée par l'indice de Gini, d'autre part. Les annexes sont disponibles uniquement sur le site web du Département des Affaires économiques de l'OCDE: www.oecd.org/eco/Documentsdetravail. |
| Keywords: | unemployment, chômage, institutions, institutions, employment, emploi, income distribution, poverty, distribution des revenus, pauvreté |
| JEL: | I38 J38 J58 J68 |
| Date: | 2006–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:500-en&r=lab |
| By: | Åsa Johansson |
| Abstract: | The centralised wage agreements have helped to contain inflation. There is evidence that wage increases were more moderate when a central agreement was concluded than in periods when no central agreement was reached. Nevertheless, there is also evidence that centralised wage setting has had some drawbacks in terms of reducing employment among low-skilled and younger workers because of high minimum wage floors. In the current wage setting system there are components that allow for greater relative wage flexibility. These should be used more extensively. The role of the government in future agreements should be to encourage greater relative wage flexibility within the current bargaining framework. This paper relates to the 2006 Economic Survey of Finland (www.oecd.org/eco/surveys/finland). <P>Fixation des salaires en Finlande : Accroître la flexibilité dans les accords salariaux centralisés <BR>Les accords salariaux centralisés ont aidé à maîtriser l?inflation. On peut constater que les hausses de salaires ont été plus modérées lorsqu?il y avait accord centralisé que dans les périodes où on n?y était pas parvenu. Néanmoins, on constate aussi que la détermination centralisée des salaires a pour inconvénient, du fait du niveau élevé du salaire minimum, de réduire l?emploi chez les personnes peu qualifiées et les jeunes. Le système actuellement en vigueur comporte des éléments qui permettraient une plus grande souplesse salariale relative. Il faudrait les faire jouer davantage. Le rôle du gouvernement dans les accords futurs devrait être d?encourager une plus grande souplesse salariale relative à l?intérieur du système actuel de négociation. Ce document de travail se rapporte à l?Étude économique de la Finlande 2006. (www.oecd.org/eco/etudes/finlande). |
| JEL: | E24 J23 J3 J50 J52 |
| Date: | 2006–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:503-en&r=lab |
| By: | Damian Grimshaw (Manchester Business School - [University of Manchester]); Marilyn Carroll (Manchester Business School - [University of Manchester]); Karen Jaehrling (IAT - Institut Arbeit und Technik - [Universität der Arbeit]); Philippe Méhaut (LEST - Laboratoire d'économie et de sociologie du travail - [CNRS : UMR6123] - [Université de Provence - Aix-Marseille I][Université de la Méditerranée - Aix-Marseille II]) |
| Abstract: | The hospital industry could be characterised on the one hand as under “industrial constraints” (just in time, 24 hours opening, and on the other hand as a service activity with, in departments, a high degree of patient oriented activities. Very similar pressure are exerted on hospitals in the three countries (UK, G and F): budget constraints and a trend to “quasi market” regulations (cf. Bartlett/LeGrand 1993); changes in the competitive structure linked with the increasing importance of private hospitals; a new demand for care arising from the ageing population and more complex diseases; new rules to control for the quality of care. Despite these similarities between the external demands and constraints, the organisation of care work and the division of labour remains very different between the countries. Section 1 presents a brief historical perspective of the nurse assistant in the three countries and the major contrast regarding the level and trends of employment. Section 2 analyses the training profiles and access to training. Section 3 describes the tasks performed and draws the job profile of a NA. Section 4 discusses the wage levels and structure and section 5 patterns of mobility. |
| Keywords: | Low wage; Nurse assistant; Hospital; Division of labour; Comparison; Germany; France; the United Kingdom |
| Date: | 2006–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00085863_v1&r=lab |
| By: | Becker, Sascha O.; Ekholm, Karolina; Jäckle, Robert; Mündler, Marc-Andreas |
| Abstract: | Using data for German and Swedish multinational enterprises (MNEs), this paper assesses international employment patterns. It analyzes determinants of location choice and the degree of substitutability of labor across locations. Countries with highly skilled labor forces attract German MNEs, but we nd no such evidence for Swedish MNEs. This is consistent with the hypothesis that German MNEs locate production stages intensive in high-skilled labor abroad. In MNEs from either country, af liate employment tends to substitute for employment at the parent rm. At the margin, substitutability is the strongest with respect to af liate employment in Western Europe. A one percent larger wage gap between Germany and locations in Central and Eastern Europe (CEE) is estimated to be associated with 900 fewer jobs in German parents and 5,000 more jobs in af liates located in CEE. A one percent larger wage gap between Sweden and CEE is estimated to be associated with 140 fewer jobs in Swedish parents and 260 more jobs in af liates located in CEE. |
| Keywords: | Multinational enterprises, location choice, multinomial choice, labor demand, translog cost function |
| JEL: | F21 F23 J21 J23 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdp1:2942&r=lab |
| By: | Busse, Matthias; Spielmann, Christian |
| Abstract: | The paper empirically explores the international linkages between gender inequality and trade flows of a sample of 92 developed and developing countries. The focus is on comparative advantage in labour-intensive manufactured goods. The results indicate that gender wage inequality is positively associated with comparative advantage in labourintensive goods, that is, countries with a larger gender wage gap have higher exports of these goods. Also, gender inequality in labour force activity rates and educational attainment rates are negatively linked with comparative advantage in labour-intensive commodities. |
| Keywords: | Gender Inequality, Trade, Comparative Adva e |
| JEL: | F11 F16 J70 J80 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec05:3481&r=lab |
| By: | Pierre Beret (LEST - Laboratoire d'économie et de sociologie du travail - [CNRS : UMR6123] - [Université de Provence - Aix-Marseille I][Université de la Méditerranée - Aix-Marseille II]); Jean-François Giret (CEREQ - Centre d'études et de recherches sur les qualifications - [Ministère de l'Education nationale, de l'Enseignement supérieur et de la Recherche][ministère de l'Emploi, cohésion sociale et logement]); Isabelle Recotillet (CEREQ - Centre d'études et de recherches sur les qualifications - [Ministère de l'Education nationale, de l'Enseignement supérieur et de la Recherche][ministère de l'Emploi, cohésion sociale et logement]) |
| Abstract: | The organisation of research is a powerful factor structuring the labour market for recent doctorate recipients. The queue for permanent research positions in the academic sector has created a specific labour market for young doctorates, characterised by a proliferation of postdoctoral<br />programmes and fixed-term contracts. In that specific context, our paper deals with the way the young PhD graduates enter the labour market, the way they get a job as researcher in the private or public sector and how much the return of the job mobility from the public academic sector to the private sector is. Using a longitudinal survey provided by the Cereq, our results suggest that even if nearly the half of the cohort has a direct access to jobs in the research sector (private or public), 20% remain in trajectories dominated by under-qualified<br />jobs or recurrent unemployment. Our empirical investigation show a negative or non significant returns of the job mobility from the public academic sector to the private sector. |
| Keywords: | Marché du travail; Insertion professionnelle; Post Doctorant; Jeune; Mobilité professionnelle; France |
| Date: | 2006–07–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00006142_v1&r=lab |
| By: | Christoffel, Kai Philipp; Küster, Keith; Linzert, Tobias |
| Abstract: | We focus on a quantitative assessment of rigid labor markets in an environment of stable monetary policy. We ask how wages and labor market shocks feed into the inflation process and derive monetary policy implications. Towards that aim, we structurally model matching frictions and rigid wages in line with an optimizing rationale in a New Keynesian closed economy DSGE model. We estimate the model using Bayesian techniques for German data from the late 1970s to present. Given the pre-euro heterogeneity in wage bargaining we take this as the first-best approximation at hand for modelling monetary policy in the presence of labor market frictions in the current European regime. In our framework, we find that labor market structure is of prime importance for the evolution of the business cycle, and for monetary policy in particular. Yet shocks originating in the labor market itself may contain only limited information for the conduct of stabilization policy. |
| Keywords: | Labor market, wage rigidity, bargaining, Bayesian estimation |
| JEL: | C11 E32 E52 J64 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdp1:4356&r=lab |
| By: | Andrew Swiston; Tamim Bayoumi; Bennett Sutton |
| Abstract: | We analyze the flexibility of the Canadian labor market across provinces in both an interand intra-national context using macroeconomic data on employment, unemployment, participation, and (for Canada) migration and real wages. We find that Canadian labor markets respond in a similar manner to their U.S. counterparts and are more flexible than those in major euro area countries. Within Canada, the results indicate that labor markets in Ontario and provinces further west are more flexible, particularly with regard to migration, while those further east are less so. |
| Date: | 2006–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:06/83&r=lab |
| By: | Jan Sauermann |
| Abstract: | This study deals with the effect of fixed-term contracts on work-related training. Though previous studies found a negative effect of fixed-term contracts on the participation in training, from the theoretical point of view it is not clear whether workers with fixed-term contracts receive less or more training, compared to workers with permanent contracts. In addition to the existing strand of literature, we especially distinguish between employer- and employee-financed training in order to allow for diverging investment patterns of worker and firm. Using data from the German Socio-Economic Panel (GSOEP), we estimate a bivariate probit model to control for selection effects that may arise from unobservable factors, affecting both participation in training and holding fixed-term contracts. Finding negative effects for employer-sponsored, as well as for employee-sponsored training, leads us to conclude that workers with fixed-term contracts do not compensate for lower firm investments. |
| Keywords: | training, fixed-term contracts, bivariate probit model |
| JEL: | C35 J24 J42 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:14-06&r=lab |
| By: | Robert A. Hart (University of Stirling and IZA Bonn) |
| Abstract: | This paper investigates the relative cyclical behavior of the pay of piece workers and hourly paid workers. It uses a unique data set of blue-collar workers in British engineering between 1926 and 1966. The statistics are obtained from the payrolls of firms belonging to the Engineering Employers Federation (EEF). Roughly, the EEF accounted for one-third of the total engineering workforce. The data consist of cell averages delineated by 15 occupations in 29 engineering districts. Via a firm-union bargaining modelling structure, the question is examined as to likely earnings responses to price shocks under the two payment systems. The empirical work entails testing for cyclical differences in the two payments methods Insights are gained from distinguishing between the relatively tight post-war and slack prewar labor markets. |
| Keywords: | piece work pay, hourly pay, business cycle |
| JEL: | E32 J31 J33 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2210&r=lab |
| By: | Mark Doms; Ethan Lewis |
| Abstract: | The positive correlations found between computer use and human capital are often interpreted as evidence that the adoption of computers have raised the relative demand for skilled labor, the widely touted skill-biased technological change hypothesis. However, several models argue the skill-intensity of technology is endogenously determined by the relative supply of skilled labor. We use instruments for the supply of human capital coupled with a rich dataset on computer usage by businesses to show that the supply of human capital is an important determinant of the adoption of personal computers. Our results suggest that great caution must be exercised in placing economic interpretations on the correlations often found between technology and human capital. |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:2006-18&r=lab |
| By: | Robert Fenge; Volker Meier |
| Abstract: | This paper investigates regional or international transfers as a means to prevent immigration into unemployment. We analyze a two-country model with free migration in which the rich country is characterized by minimum wage unemployment. Matching grants for investment in infrastructure are superior to wage subsidies because the former instrument leads to a stronger productivity growth in the poor country, reducing both migration flows and unemployment in the rich country. This result is shown to hold for a sufficiently low level of the regional policy budget. It explains the exclusive use of investment subsidies in the EU. |
| Keywords: | regional policy, public infrastructure, wage subsidies, unemployment, migration |
| JEL: | D62 H23 H54 H77 J61 R50 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1741&r=lab |
| By: | Annalisa Fedelino; Gerd Schwartz; Marijn Verhoeven |
| Abstract: | This paper assesses whether the scaling up of aid and the resulting increase in government spending that is needed to meet the Millennium Development Goals (MDGs) would be hampered by wage bill ceilings that are often part of government programs supported by the IMF's Poverty Reduction and Growth Facility (PRGF). Based on country case studies for 2003-05, the paper suggests that, in the past, wage bill ceilings have not restricted the use of available donor funds. Yet the paper offers a number of suggestions for further enhancing the flexibility of wage bill conditionality in PRGF-supported programs to respond to higher aid flows that may result in the future. |
| Keywords: | Conditionality , Development assistance , Wage restraint , Millennium Development Goals , Fiscal policy , Government expenditures , Wages , Labor costs , Labor markets , Fund role , Poverty Reduction and Growth Facility , |
| Date: | 2006–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:06/106&r=lab |
| By: | Anne C. Gielen (Tilburg University, CentER, OSA and IZA Bonn); Marcel J.M. Kerkhofs (OSA, Tilburg University); Jan C. van Ours (Tilburg University, CentER, CEPR and IZA Bonn) |
| Abstract: | This paper uses information from a panel of Dutch firms to investigate the labor productivity effects of performance related pay (PRP). We find that PRP increases labor productivity at the firm level with about 9% and employment with about 5%. |
| Keywords: | performance related pay, labor productivity |
| JEL: | C41 H55 J64 J65 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2211&r=lab |