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Wage Formation (wage + formation)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	80%

Selected Abstracts

Wage Formation, Regional Migration and Local Labour Market Tightness,

OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 4 2006
Fredrik Carlsen
Abstract Empirical studies of regional wage formation and interregional migration routinely include the regional unemployment rate as indicator of local labour market tightness. However, these studies are usually motivated by economic theories that emphasize transition probabilities between unemployment and employment, and the unemployment rate is an imperfect proxy for these probabilities. We use a large micro data set to compute estimates of the rate of outflow from unemployment for 90 Norwegian travel-to-work areas. The outflow rates perform better than traditional measures of regional labour market tightness in panel data analyses of regional wages and interregional migration. [source]

Wage formation and employment in a cointegrated VAR model

THE ECONOMETRICS JOURNAL, Issue 2 2001
Thórarinn G. Pétursson
This paper uses a general equilibrium, monopolistic competition model of wage bargaining between trade unions and firms to derive two steady state relations which are estimated within a cointegrated VAR framework using quarterly Danish data. The first cointegrating relation is the marginal productivity condition for labour, derived from profit maximization of firms who face a downward sloping demand curve for their product. The second cointegrating relation is a real wage relation, derived from the bargaining between trade unions and firms over wages, in the right-to-manage manner. The theoretical model is not rejected and the model displays parameter constancy throughout the estimation period and is able to forecast out-of-sample. [source]

Labour market implications of EU product market integration

ECONOMIC POLICY, Issue 30 2000
Torben M. Andersen
European labour markets are in a state of flux due to the changing market situation induced by international integration. This process affects wage formation through more fierce product market competition and increased mobility of jobs. This development is by some observers taken to enforce labour market flexibility, while for others it signals an erosion of social standards and in turn possibly the welfare society. Since labour is not very mobile in Europe, the effects of international integration on labour markets are mostly indirect via product market integration. We review the channels through which product market integration affects labour markets and perform an empirical analysis of the convergence and interdependencies in wage formation among EU countries. We find that integration is changing labour market structures and inducing wage convergences as well as stronger wage interdependencies, but it is a gradual process. Moreover, the present study does not support the view that international integration will lead to a ,race to the bottom' and rapidly erode domestic labour markets standards, nor that it will relieve politicians of the need to consider labour market reforms to improve labour market performance. [source]

Wage differentials between the public and private sectors in India,

JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 3 2007
Elena Glinskaya
Abstract This study uses 1993,94 and 1999,2000 rounds of India Employment and Unemployment survey to investigate wage differentials between the public and private sectors. To obtain robust estimates of the wage differential, we apply three econometric techniques each relying on a different set of assumptions about the process of job selection and wage formation. All three methods show that differences in wages between public sector workers and workers in the formal-private and informal-casual sectors are positive and high. On average, the public sector premium ranges between 62 and 102 per,cent over the private-formal sector, and between 164 and 259 per,cent over the informal-casual sector, depending on the choice of methodology. The wage differentials in India tend to be higher in rural as compared to urban areas, and are higher among women than among men. The wage differential also tends to be higher for low-skilled workers. There is considerable evidence of an increase in the wage differential between 1993,1994 and 1999,2000. Copyright © 2007 John Wiley & Sons, Ltd. [source]