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on Labour Economics |
| By: | Nils Braakmann (Institute of Economics, Leuphana University of Lüneburg) |
| Abstract: | This paper investigates the gender wage gap among skilled German workers after the end of vocational training using data from social security record. Using information on worker and plant characteristics for both the training plant and the current employer, results from standard decomposition techniques show that up to 91% of an initial 14% earnings disadvantage for women in the first job can be attributed to differences in endowments. Of these, occupational segegreation explains up to two thirds of the earnings gap, with plant characteristics accounting for up to 30%. |
| Keywords: | Gender wage gap, decomposition, field of training |
| JEL: | J24 J31 J71 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:90&r=lab |
| By: | Gernandt, Johannes; Pfeiffer, Friedhelm |
| Abstract: | This paper investigates the wage convergence between East German workers and their West German counterparts after reunification. Our research is based on a comparison of three groups of workers defined as stayers, migrants and commuters to West Germany, who lived in East Germany in 1989, with groups of West German statistical twin workers, all taken from the Socio-Economic Panel (SOEP). According to our findings, wage convergence for stayers is roughly 75 percent and for commuters 85 percent. Wages of migrants to West Germany equal the ones of their West German statistical twins. We conclude that labor markets in East and West Germany are still characterized by wage differences but that the degree of inequality in both regions converged. |
| Keywords: | Wage convergence, wage inequality, German unification, migration, commuting |
| JEL: | J30 J31 J61 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:7294&r=lab |
| By: | Jürgen Figerl (Department of Economics, Vienna University of Economics & B.A.); Thomas Grandner (Department of Economics, Vienna University of Economics & B.A.) |
| Abstract: | In a simple oligopsonistic model, firms compete for labour through wages and job qualities. We modify the product market model developed by Vandenbosch/Weinberg 1995 and apply it to the job market with jobs being defined by two vertically differentiated non-wage characteristics. Workers differ in their valuation of these two characteristics but do not differ in their productivity. In equilibrium firms offer different wages and differ in only one of these non-wage characteristics. Whereas our labour market model is based on firms, we apply subclasses according to the UK SIC(2003) in our empirical analysis. When comparing subclasses within selected sectors (WERS) we found evidence that firms compete in both wages and job qualities. |
| JEL: | J30 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp121&r=lab |
| By: | Siminski, Peter (University of Wollongong) |
| Abstract: | This paper estimates the average Austral ian public sector wage premium. It inclu des a detailed critical review of the me thods available to address this issue. T he chosen approach is a quasi-difference d panel data model, estimated by the Gen eralised Method of Moments, which has ma ny advantages over other methods and has not been used before for this topic. I find a positive average public sector wa ge premium for both sexes. The best esti mates are 6.7% for men and 10.5% for wom en. The estimate is statistically signif icant for men (p = 0.024) and for women (p < 0.001). No evidence is found to sug gest that the public sector has an equal ising effect on the wages of its workers . |
| Keywords: | public sector, wages, premium, panel data, GMM, Australia |
| JEL: | J45 J31 J38 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:uow:depec1:wp08-05&r=lab |
| By: | Michael Rusinek (DULBEA, Université libre de Bruxelles, Brussels); François Rycx (DULBEA, Université libre de Bruxelles, Brussels, and IZA, Bonn) |
| Abstract: | In many European countries, the majority of workers have their wages directly defined by industry-level agreements. In addition, for some workers, industry agreements are complemented by firm-specific agreements. This paper provides a critical survey of the effects of this two-tier bargaining system on the structure of wages in Europe and more particularly in Belgium. Empirical findings almost always show that firm-level agreements have a positive and significant effect on workers’ wages. The impact on the dispersion of wages, however, is ambiguous. This is partially due to the varying degree of centralisation of collective bargaining across countries and industries. |
| Keywords: | Collective bargaining, decentralisation, wage structure, Europe. |
| JEL: | J31 J51 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:dul:wpaper:08-16rs&r=lab |
| By: | John K. Dagsvik and Zhiyang Jia (Statistics Norway) |
| Abstract: | Traditional labor supply analysis is based on the assumption that workers only have preferences over consumption and hours of work, and are able to choose consumption and hours freely within the budget constraint. Recently, various discrete choice versions of the traditional approach (with discrete hours) have become popular, but the basic assumption above is still maintained. Neither of these two approaches allows for agents’preferences over qualitative job-specific or choice restrictions facing the agents in the labor market in terms of restricted choice sets of job opportunities. In this paper we argue for an alternative modeling framework that differs from the standard models of labor supply in that the notion of job choice is fundamental. Specifically, the worker is assumed to have preferences over a latent worker-specific choice set of jobs from which he chooses his preferred job. A job is characterized with fixed (job-specific) working hours, wage rate and non-pecuniary attributes. As a result, observed hours of work and wage rate are interpreted as the job-specific (fixed) hours of work and wage rate associated with the chosen job. The discussion in this paper focuses on interpretation of different versions and extensions of the alternative framework, theoretical and practical advantages, and how this approach relates to familiar existing approaches in the literature. |
| Keywords: | Labor supply; non-pecuniary job attributes; non-convex budget sets; latent choice sets; random utility models. |
| JEL: | J22 C51 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:550&r=lab |
| By: | Strawinski, Pawel |
| Abstract: | In the article private rate of return to higher education in the 1998-2005 period is considered. The model is based on a comparative advantage theory. Extended Mincerian wage equation is used to account for a non-random decision to undertake studies at university level. The estimate of private rate of return in Poland is roughly 9%, and it is among the highest in Europe. In addition, the unexpected rise in rate of return is observed. Moreover, positive relationship between graduation and the obtained wages was found. This change has been linked to labour market transformation and Skill Biased Technical Change. Also the influence of financing tertiary education is considered. |
| Keywords: | return to education, private returns, skill biased technical change, sample selection. |
| JEL: | I20 |
| Date: | 2008–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5184&r=lab |
| By: | Dario Sciulli (University of Pescara and CEEAplA); Antonio Gomes de Menezes (University of the Azores and CEEAplA); José Cabral Vieira (University of the Azores, CEEAplA and IZA) |
| Abstract: | This paper focuses on friction in the matching process arising in a dual labour market where good and bad jobs coexist. In particular, we present an empirical investigation of the role of strong preferences for permanent contracts to explain job mismatch and longer unemployment duration. To allow for a more flexible matching technology specification and to control for the role of micro level characteristics, we estimate a matching function using different specifications of hazard models for multiple unemployment spells, allowing both random matching and stock-flow matching mechanisms. We find evidence that the determinants of reemployment probabilities differ by gender. We also find a positive effect from having previous job experiences and, according to semi-parametric specifications, undergoing training while unemployed on reemployment probabilities. Overall we find that higher heterogeneity in searched and offered contract types increases frictions in the matching process. Specifically, individuals looking for a permanent contract experience longer unemployment duration, suggesting the existence of congestion problems related to the permanent job labour market segment. Finally, in order to reduce frictions in the matching process, policies aimed to provide training and to increase desirability of temporary contracts should be promoted. |
| Keywords: | Hazard Models, Dual Labour Markets, Temporary Contracts, Matching Mechanism. |
| JEL: | J64 C41 |
| Date: | 2008–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:119&r=lab |
| By: | Beatrice Pierluigi (Corresponding author: EU Countries Division, Directorate General Economics, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Moreno Roma (EU Countries Division, Directorate General Economics, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.) |
| Abstract: | This paper studies the role of wage moderation and labour and product market regulation for employment creation. To this end, labour demand estimates are presented for the five largest euro area countries at the aggregate level and for three macro sectors - manufacturing, construction and services. Estimates are carried out for individual countries as well as for the pooled group of countries. This paper shows that labour cost moderation generally helps employment creation, notwithstanding the fact that elasticities of employment to labour costs vary across the countries and sectors analysed. It also shows that some key institutional/structural variables add to the explanation of labour demand developments. In particular, in some countries and sectors, our results point to a negative link between employment growth, the unemployment benefit replacement rate and product market regulation. JEL Classification: E24, J23, J30, C22, C23. |
| Keywords: | Labour demand, labour cost, panel estimates. |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20080912&r=lab |
| By: | Minas Vlassis (Department of Economics, University of Crete, Greece); Nick Drydakis (Department of Economics - University of Crete, Greece) |
| Abstract: | The European labour markets are characterized by the existence of trade unions with extensive coverage whereas wage contracts are typically determined through decentralized firm-union bargaining. On the other hand, as it particularly refers to migrant and ethnic minority groups, equally-skilled workers often face lower reservation wages. We argue that these facts may lead unions to opt for discriminatory wage contracts across groups of employees. At the same time firms may nonetheless opt for non-discrimination in wages insofar as they would profitably “advertise” it as an exertion of corporate social responsibility (csr). We show that, if the consumers’ valuation of non-discrimination is sufficiently high, the latter strategies would as well be compatible with the unions’ best interest in the equilibrium. Otherwise, we propose that to efficiently combat wage discrimination policy makers should instead of firms undertake csradvertisement in the event of non-discrimination. Yet, such an antidiscrimination policy would always entail a net loss in social welfare. |
| Keywords: | Unions, Oligopoly, Discriminatory Wage Contracts, Antidiscrimination Policy, Corporate Social Responsibility. |
| JEL: | C72 L15 L21 L22 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:crt:wpaper:0810&r=lab |
| By: | Ian Walker (University of Warwick); Yu Zhu (University of Kent) |
| Abstract: | This paper reports estimates of the UK “college premium” for young graduates across successive cohorts from large cross section datasets for the UK pooled from 1994 to 2006 - a period when the higher education participation rate increased dramatically. The growth in relative labour demand suggests that graduate supply considerably outstripped demand which ought to imply a fall in the premium. We find no significant fall for men and even a large, but insignificant, rise for women. Quantile regression results reveal a fall in the premium only for men in the bottom quartile of the distribution of unobserved skills. |
| Keywords: | human capital, higher education, college premium |
| JEL: | I20 J3 |
| Date: | 2008–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:200817&r=lab |
| By: | Ramon Gomez-Salvador (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Nadine Leiner-Killinger (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.) |
| Abstract: | The paper starts by presenting some stylised facts on youth unemployment over the last two decades, both at the euro area and the country level. It shows that despite declining considerably over the last few years, youth unemployment has remained at a high level relative to other age groups in most euro area countries. The paper finds that there is a positive relationship between the share of young people in the total population and the youth unemployment rate, i.e. the smaller the share of young people in the population, the lower the risk of them being unemployed. At the same time, economic conditions are negatively correlated with the youth unemployment rate, i.e. the youth unemployment rate increases when the economic situation worsens. Moreover, robust results across the regression scenarios show that higher employment protection and minimum wages imply a higher youth unemployment rate, while active labour market policies (ALMPs) tend to reduce it. The results also indicate that the increasing share of services employment in total employment is helping to reduce unemployment among young persons. Furthermore, the increase in the youth inactivity rate, which is mainly due to the fact that there are more young people in education, is also linked to the overall decline in youth unemployment. Finally, as regards education, the results indicate that the number of years of education, the number of young people with vocational training and, to a lesser extent high scores in the PISA study, are associated with lower youth unemployment rates. The share of the young population not in school, however, is positively correlated with the unemployment rate. As youth unemployment is subject to certain country-specific features, each country should identify the relevant underlying sources of youth unemployment and react accordingly. Governments can make a positive contribution to the smooth transition of young persons fromeducation to the labour market by providing a well-functioning education system and labour market institutions that do not introduce distortions into the labour market. JEL Classification: I2, J11, J13, J21, J64. |
| Keywords: | Youth, unemployment, employment, demographic trends, institutions, education. |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:20080089&r=lab |
| By: | T. BERGER; G. EVERAERT |
| Abstract: | This paper tests whether the impact of labour taxes on unemployment is symmetric with respect to increases and decreases in labour taxes. Using a panel of 16 OECD countries over the period 1970-2005, we estimate a panel unobserved component model to account for the fact that unemployment rates and labour taxes are non-stationary but not co integrated. We find a positive impact of tax increases in European and Nordic countries but no effect of decreasing labour taxes on the rate of unemployment. For Anglo-Saxon countries, no impact of labour taxes on unemployment is found. |
| Keywords: | unemployment, labour taxes, asymmetry, unobserved component model |
| JEL: | C15 C33 E24 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:08/523&r=lab |
| By: | Salm, M |
| Abstract: | I use longitudinal data from the Health and Retirement Study to estimate the effect of job loss on health for near elderly employees. Job loss is a major cause of economic insecurity for working age individuals, and can cause reduction in income, and loss of health insurance. To control for possible reverse causality, this study focuses on people who were laid off for an exogenous reason - the closure of their previous employers’ business. I find that the unemployed are in worse health than employees, and that health reasons are a common cause of job termination. In contrast, I find no causal effect of exogenous job loss on various measures of health. This suggests that the inferior health of the unemployed compared to the employed could be explained by reverse causality. I also use instrumental variable regression to estimate the effect of loss of health insurance, loss of income, and re-employment on health, and again find no statistically significant effects. |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:yor:hectdg:08/16&r=lab |
| By: | Vincenzo Atella (Faculty of Economics, University of Rome "Tor Vergata"); Noemi Pace (Faculty of Economics, University of Rome "Tor Vergata"); Daniela Vuri (Faculty of Economics, University of Rome "Tor Vergata") |
| Abstract: | The aim of this research is to investigate the relationship between obesity and wages, using data for nine countries from the European Community Household Panel (ECHP) over the period 1998-2001. We improve upon the existing literature by adopting a Quantile Regression approach to characterize the heterogenous impact of obesity at different points of the wage distribution. Our results show that i) the evidence obtained from mean regression and pooled analysis hides a significant amount of heterogeneity as the relationship between obesity and wages differs across countries and wages quantiles and ii) cultural, environmental or institutional settings do not seem to be able to explain differences among countries, leaving room for a pure discriminatory effect hypothesis. |
| Keywords: | quantile treatment effect, obesity, wages, endogeneity |
| JEL: | C12 C21 C23 I10 I18 |
| Date: | 2008–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:123&r=lab |
| By: | Dhas, Albert Christopher; Helen, Mary Jacqueline |
| Abstract: | The unorganised workers account for about 93 per cent of the total workforce and there is a steady growth in it over years in India. It is argued that India had a long tradition of informal social security and social assistance system directed particularly towards the more vulnerable sections of the society but underwent steady and inevitable erosion. The social security initiatives of the Centre, State and NGO’s implemented during the past indicated that the needs are much more than the supports provided and the efforts must be targeted and vast enough to cover the growing unorganised workers. It is argued that the major security needs of the unorganised workers are food security, nutritional security, health security, housing security, employment security, income security, life and accident security, and old age security. In sum, the study calls for a Comprehensive, Universal and Integrated Social Security System for the unorganised workers in India. |
| Keywords: | India;Unorganised Workers;Social Security;Informal Sector;Food security;Nutritional security;Health security;Housing security;Employment security;Income security;Life and Accident security;Old age security |
| JEL: | E24 E26 A14 |
| Date: | 2008–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:9247&r=lab |
| By: | Bart Van den Cruyce; Johan Wera |
| Abstract: | The paper describes how an input-output table can be linked to detailed employment data in order to provide qualitative employment multipliers. Qualitative employment multipliers specify the direct and indirect labour use by final demand products of worker types differentiated by gender, age class, professional status, educational attainment level, labour regime or a combination of these characteristics. |
| JEL: | C67 J24 J1 |
| Date: | 2007–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:0715&r=lab |
| By: | Malin Andersson (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Arne Gieseck (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Beatrice Pierluigi (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Nick Vidalis (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.) |
| Abstract: | This study presents some stylised facts on wage growth differentials across the euro area countries in the years before and in the first eight years after the introduction of Economic and Monetary Union (EMU) in 1999. The study shows that wage growth dispersion, i.e. the degree of difference in wage growth at a given point in time, has been on a clear downward trend since the early 1980s. However, wage growth dispersion across the euro area countries still appears to be higher than the degree of wage growth dispersion within West Germany, the United States, Italy and Spain. Differences in wage growth rates between individual euro area countries and the euro area in the years before and in the first eight years after the introduction of EMU appear to be positively related to the respective differences between their Harmonised Index of Consumer Prices (HICP) inflation and average HICP inflation in the euro area. Conversely, relative wage growth differentials across euro area countries have been somewhat unrelated to relative productivity growth differentials. Some countries combine positive wage growth differentials and negative productivity growth differentials vis-à-vis the euro area average over an extended period – and hence positive unit labour cost growth differentials. These countries run the risk of accumulating competitiveness losses and it is therefore a challenge to ensure that the necessary adjustment mechanisms operate fully, in the sense that wage developments are sufficiently flexible and reflect productivity developments. Wage growth persistence within individual euro area countries – largely reflecting inflation persistence and certain institutional factors – might also have contributed somewhat to wage growth differentials across the euro area countries. Moreover, wage level convergence has also played a role in explaining wage growth patterns in the 1980s and the 1990s. However, since 1999, the link between the initial compensation level and the subsequent growth rate of compensation per employee appears barely significant. The study also shows a limited co-movement of wage growth across countries, even in the context of a high degree of business cycle synchronisation seen in the last few years. This suggests that the impact on wage growth of country-specific developments across euro area countries has been larger than the impact of common cyclical developments and external shocks. This could reflect the normal and desirable working of adjustment mechanisms, which – in an optimally functioning currency union with synchronised business cycles – would take place via price and cost and wage developments. On the other hand, structural impediments, for example a relatively low degree of openness in domestically-oriented sectors in some countries, might prevent a stronger link between the degree of synchronisation of wage growth rates and business cycles. JEL Classification: E24, E31, C10. |
| Keywords: | Cross-country wage dispersion, wage and productivity levels across countries and sectors. |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:20080090&r=lab |
| By: | Didier Blanchet (INSEE institut national de la statistique et des études économiques); Thierry Debrand (IRDES institut for research and information in health economics) |
| Abstract: | Individual preferences concerning retirement age are strongly differentiated both within and between countries. According to the Share survey, the proportion of workers aged from 50 to 65 who wished to retire as soon as possible in 2004 ranged from 31% in the Netherlands to 67% in Spain. Such a preference for early retirement can depend on both financial and non financial factors. Non financial factors include working conditions, health status and mortality expectations. Economic or "monetary" factors essentially correspond to the magnitude of pension entitlements and how they depend upon retirement age. Entitlements that depend positively on retirement age should reduce the motivation to retire as soon as possible. This paper compares the role of these different factors by combining individual data from the Share survey with macroeconomic indicators of pension entitlements recently produced by the OECD. Health and work conditions come out as strong determinants of the preference for early retirement. Being generally satisfied with one's work leads to a drop of approximately 16 percentage points in the probability of wishing to retire as soon as possible. Declaring oneself in bad or very bad health has a positive effect on this probability of a comparable order of magnitude. However, these non financial factors do not significantly contribute to the explanation of cross-country differentials. Conversely, financial factors seem to have a lower impact at micro-level, but a higher one for the explanation of cross-country differentials. |
| Keywords: | Retirement, Monetary factor, Health, Job satisfaction |
| JEL: | J28 I10 J26 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:irh:wpaper:dt13&r=lab |
| By: | Laixun Zhao (Research Institute for Economics and Business Administration, Kobe University) |
| Abstract: | This paper models the economic aspects of labor standards in an oligopolistic framework of three countries, incorporating labor-management negotiations in the North and monopsonic labor markets in Southern countries. Different from the literature, a higher LS not only requires a higher cost, but also benefits workers and induces them to work harder. Because of theselinks, Northern intervention, via import taxes or minimum LS regulation, may often have perverse effects on Southern countries. Nevertheless, such interventions may occur due to domestic unionization or pressure from global competition. Specifically, imposing a tariff against a certain Southern country to force up its LS does not work. Further, the tariff would shift production to another country. These shed light on why developing countries oppose including LS in WTO negotiations. We also find that union wages, employment and utility increase with a higher import tariff, which explains why unions are keen lobbies of raising LS in developing countries. Under minimum LS regulation in one Southern country, the LS and profits in the other Southern country and the utility of the Northern union may fall. Finally, as the empirical evidence shows, we demonstrate that multinational enterprises choose to locate in those developing countries whose LS is relatively higher rather than lower, because LS benefits workers and labor unions, and is thus productive. |
| Keywords: | Labor Standards, Labor Unions, Oligopoly, Trade Policy, North-South Issues |
| JEL: | F16 |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:193&r=lab |
| By: | Susanne Warning; Christian Wiermann; Günther G. Schulze (Department of International Economic Policy, University of Freiburg) |
| Abstract: | This paper investigates the determinants of tenure decisions in Germany, Austria and the German-speaking part of Switzerland for professorships in economics, business administration and related fields. Our data set comprises candidates who were awarded tenure as well as those who were eligible but were not tenured. We show that business candidates have a higher probability of being tenured than economists. Youth, marital status, and publications matter; gender and children do not. The market for first appointments in economics relies much more on publication performance than the market for business administration. |
| Keywords: | Habilitation, tenure, academic labor market |
| JEL: | A11 I23 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:fre:wpaper:6&r=lab |
| By: | Marco Caliendo; Alexander S. Kritikos |
| Abstract: | Supporting start-ups by unemployed persons with governmental programs became an important issue as benefits could include termination of unemployment and further job creation. However, it is feared that previously unemployed lack qualifications for entrepreneurship. We analyze potential effects based on a data-set containing a representative sample of 3,100 start-ups founded by unemployed in Germany. We find that these founders are motivated by push and pull factors. Using a proportional hazard duration model with unobserved heterogeneity allows us to analyze the characteristics which drive success of the businesses. While survival rates are high, the characteristics of the developed businesses are heterogeneous. |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:phu:wpaper:008&r=lab |
| By: | Javier Ordoñez (Universitat Jaume I); Katarina Juselius (University of Copenhagen) |
| Abstract: | This paper provides an empirical investigation of the wage, price and unemployment dynamics that have taken place in Spain during the last two decades. The aim of this paper is to shed light on the impact of the European economic integration process on Spanish labour market and the convergence to a European level of prosperity. We find some important lessons to be learnt from the Spanish experience that should be relevant for the new member states. First, high competitiveness in the tradable sector seems crucial for the real and nominal convergence to be successful. The increase in consumption wages and consumer prices as a result of the Balassa-Samuelson effect should not be allowed to exceed the improvement in productivity. Second, before fixing the real exchange rate it seems crucial that it is on its sustainable (competitive) purchasing power parity level. Third, there does not seem to be a short-cut to a European level of standard of living: the path to sustainable prosperity seems to follow the path of productivity improvement. Forth, excessive real wage increases seem to lead to increasing unemployment, slowdown in productivity growth, higher interest rates, and loss of competitiveness. On the other hand, the access to the European market and the possibility of increased export demand is likely to speed up the convergence process as long as competitiveness is not eroded by excess wage increases. El presente trabajo analiza la dinámica de los salarios, precios y desempleo habida en España durante las últimas dos décadas. El objetivo es mejorar nuestra compresión sobre el impacto que el proceso de integración europeo pudo tener sobre el mercado de trabajo español y el proceso de convergencia hacia un nivel de prosperidad similar al europeo. Nuestros resultados apuntan a que de la experiencia española se podrían extraer conclusiones de interés para los países recientemente incorporados. En primer lugar, una elevada competencia en el sector de los bienes comercializables aparece como necesaria para que se produzca la convergencia tanto nominal comercial. El incremento en los salarios y los precios como resultado del efecto Balassa-Samuelson no deberían exceder los incrementos en productividad. En segundo lugar, antes de fijar los tipos de cambio es necesario que éste se encuentre en un nivel sostenible (competitivo) de capacidad de compra. En tercer lugar, no parece existir un "atajo" para alcanzar un nivel de vida similar a la media europea: el camino hacia una prosperidad sostenible sigue la senda del crecimiento de la productividad. En cuarto lugar, demandas salariales excesivas conllevan un incremento del empleo, una caída en el crecimiento de la productividad, tipos de interés más elevados y pérdida de competitividad. Por otro lado, el acceso a los mercados europeos y la posibilidad de aumentar las exportaciones favorece la convergencia a menos que la competitividad no se vea erosionada por demandas salariales excesivas. |
| Keywords: | efecto Balassa-Samuelson, convergencia real y nominal, dinámica del desempleo, paridad del poder de compra, VAR cointegrado. Balassa-Samuelson effect, nominal and real convergence, unemployment, dynamics, purchasing power parity, cointegrated VAR. |
| JEL: | C32 E24 |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasec:2008-09&r=lab |
| By: | Elad Harison; Heli Koski |
| Abstract: | ABSTRACT : The primary findings of our study suggest that software firms that adopt the OSS-based business model are notably less productive than companies that merely offer proprietary software solutions. Our estimation results further show that the OSS business model adopters have not become notably less productive after beginning to supply OSS. Therefore, its seems that not the use of the OSS business model as such has reduced the OSS firms’ labour productivity but the firms that employed the OSS business model during the sampled years were, on average, of lower labour productivity type. Though the OSS business model use has not substantially improved the performance of software firms, we find that the OSS business model adopters strategically using the source code made available by the OSS community as part of their new software products, have performed better in terms of labour productivity than other adopters of the OSS business model. |
| Date: | 2008–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1135&r=lab |
| By: | Norma B. Coe; Gema Zamarro |
| Abstract: | What are the health impacts of retirement? As talk of raising retirement ages in pensions and social security schemes continues around the world, it is important to know both the costs and benefits for the individual as well as government budgets. The authors use the Survey of Health, Aging and Retirement in Europe (SHARE) dataset to address this question in a multicountry setting. Statutory retirement ages clearly induce retirement, but are not related to an individual's health. The authors find significant evidence that retirement has a health-preserving effect on overall general health but no evidence that retiring at younger ages has a health-preserving effect. |
| Keywords: | retirement, health, behaviors |
| JEL: | I10 J26 C21 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:ran:wpaper:588&r=lab |
| By: | Schanne, Norbert (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Wapler, Rüdiger (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Weyh, Antje (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "We forecast unemployment for the 176 German labour-market districts on a monthly basis. Because of their small size, strong spatial interdependencies exist between these regional units. To account for these as well as for the heterogeneity in the regional development over time, we apply different versions of an univariate spatial GVAR model. When comparing the forecast precision with univariate time-series methods, we find that the spatial model does indeed perform better or at least as well. Hence, the GVAR model provides an alternative or complementary approach to commonly used methods in regional forecasting which do not consider regional interdependencies." (author's abstract, IAB-Doku) ((en)) |
| JEL: | C31 C53 E24 O18 |
| Date: | 2008–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:200828&r=lab |
| By: | Jean-Luc De Meulemeester (DULBEA, Université libre de Bruxelles, Brussels, Skope, University of Oxford.) |
| Abstract: | In this paper we compare the institutional evolution of the higher education systems in France and England from 1980 onwards. These two systems are interesting case-studies as they correspond to two topical opposite positions in terms of their elaborative structures : the French system was originally centralised whereas the English model was decentralised. The optimal way to reform higher education systems is different in both cases (and easier in a decentralised setting due to the noncooperative behaviour of higher education institutions). We show that England faced a centralising movement (especially since 1988) whereas in France a decentralising movement was a precondition for effective reforms. In a long run perspective there seems to be some convergence between the 2 models as well as institutional change. |
| Keywords: | reform – higher education - comparison |
| JEL: | I23 I28 P59 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:dul:wpaper:08-15rs&r=lab |
| By: | P Dolan; N Powdthavee |
| Abstract: | This note investigates Schkade and Kahneman's (1998) maxim that "Nothing in life is quite as important as you think it is while you are thinking about it". The paper shows that whilst becoming unemployed hurts psychologically, unemployment has a greater impact on happiness if the person also regards it as an important event that took place in the last year. This finding, particularly if it is replicated for other domains, such as health and income, will have important implications for how we think about the impact of objective circumstances on well-being and about well-being more generally. |
| Keywords: | Happiness, Well-being, Attention, Focusing illusion, Unemployment |
| JEL: | H0 I0 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:08/17&r=lab |