Mechanisms of the State Dependence of Wage Setting: Evidence from a Survey of Czech Firms

PurposeThe purpose of this study is to enhance understanding labour supply dynamics of the UK workers by examining whether and to what extent there is state dependence in the labour supply at both the extensive and intensive margins.Design/methodology/approachA dynamic two-tiered Tobit model is applied to the first seven waves of Understanding Society: the UK Household Longitudinal Study. The model used accounts for observed and unobserved individual heterogeneity and serially correlated transitory shocks to labour supply to draw inferences on state dependence.FindingsThe results show that both observed and unobserved individual heterogeneity contributes to observed inter-temporal persistence of the labour supply of the UK workers, and the persistence remains after these factors are controlled for, suggesting true state dependence at both the extensive and intensive margins of the labour supply. The study also finds that at both the margins, the state dependence of labour supply is larger for females than for males and that for both genders the state dependence is larger for people with low education, mature aged workers and people with long-standing illness or impairment. The results also show that estimates from a conventional Tobit model may produce misleading inferences regarding labour supply at the extensive and intensive margins.Originality/valueThis study adds to the international literature on labour supply dynamics by providing empirical evidence for both the extensive and intensive margins of labour supply, while previous studies tend to focus on the extensive margin of labour force participation only. Also, unlike earlier studies that often focus on females, this study compares labour supply dynamics between males and females. The study also compares the estimates from the more flexible two-tiered Tobit model with that from the conventional Tobit model.

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The state-dependence of output revisions

Economics Letters ◽

10.1016/j.econlet.2020.109223 ◽

2020 ◽

Vol 192 ◽

pp. 109223

Author(s):

Bruno Ducoudré ◽

Paul Hubert ◽

Guilhem Tabarly

Keyword(s):

State Dependence ◽

The State

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Proxy evidence for state-dependence of climate sensitivity in the Eocene greenhouse

Nature Communications ◽

10.1038/s41467-020-17887-x ◽

2020 ◽

Vol 11 (1) ◽

Cited By ~ 2

Author(s):

E. Anagnostou ◽

E. H. John ◽

T. L. Babila ◽

P. F. Sexton ◽

A. Ridgwell ◽

...

Keyword(s):

Climate Sensitivity ◽

Global Climate ◽

State Dependence ◽

The State ◽

State Dependency ◽

The Past ◽

Global Mean Temperature ◽

The Earth ◽

Modelling Studies ◽

Global Mean

Abstract Despite recent advances, the link between the evolution of atmospheric CO2 and climate during the Eocene greenhouse remains uncertain. In particular, modelling studies suggest that in order to achieve the global warmth that characterised the early Eocene, warmer climates must be more sensitive to CO2 forcing than colder climates. Here, we test this assertion in the geological record by combining a new high-resolution boron isotope-based CO2 record with novel estimates of Global Mean Temperature. We find that Equilibrium Climate Sensitivity (ECS) was indeed higher during the warmest intervals of the Eocene, agreeing well with recent model simulations, and declined through the Eocene as global climate cooled. These observations indicate that the canonical IPCC range of ECS (1.5 to 4.5 °C per doubling) is unlikely to be appropriate for high-CO2 warm climates of the past, and the state dependency of ECS may play an increasingly important role in determining the state of future climate as the Earth continues to warm.

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Lambda -particle energies from the ( pi+, K+) associated production reaction on nuclei and the state dependence of the Lambda -nucleus potential

Journal of Physics G Nuclear and Particle Physics ◽

10.1088/0954-3899/19/5/004 ◽

1993 ◽

Vol 19 (5) ◽

pp. 695-701 ◽

Cited By ~ 3

Author(s):

G A Lalazissis

Keyword(s):

State Dependence ◽

The State ◽

Associated Production

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Loss Aversion and Consumption Plans with Stochastic Reference Points

The B E Journal of Theoretical Economics ◽

10.1515/bejte-2014-0100 ◽

2016 ◽

Vol 16 (1) ◽

pp. 303-336 ◽

Cited By ~ 1

Author(s):

Hyeon Park

Keyword(s):

Decision Maker ◽

Loss Aversion ◽

Intertemporal Choice ◽

Choice Model ◽

State Dependence ◽

Analytic Solutions ◽

The State ◽

Reference Points ◽

State Dependent ◽

The Individual

AbstractThis paper studies the making of risky choices following loss aversion with endogenous reference expectations under the two schemes of state-independent and state-dependent stochastic reference points. Using a tractable, intertemporal choice model, this paper derives analytic solutions to show that, when loss aversion is high, the reference-dependent decision maker saves a markedly larger amount than is predicted by the standard model. When the loss aversion is low (i.e. the individual is loss-tolerant), the overall result is ambiguous, although the decision maker may deviate into consuming more; if he faces a small level of uncertainty relative to the intensity of his loss aversion, he may even do this by borrowing. Given the same loss aversion level, this study determines that, in the presence of positive state-dependence, the state-independent model generates greater deviation than the state-dependent one. Finally, this paper derives a two-period general equilibrium result with two agents who have different attitudes toward loss.

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Empirical evidence that the state dependence and drug discrimination paradigms can generate different outcomes

Psychopharmacology ◽

10.1007/bf02311174 ◽

1995 ◽

Vol 120 (3) ◽

pp. 272-279 ◽

Cited By ~ 16

Author(s):

F. C. Colpaert ◽

W. Koek

Keyword(s):

Drug Discrimination ◽

Empirical Evidence ◽

State Dependence ◽

The State

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The effect of state dependence in a delay differential equation model for the El Niño Southern Oscillation

Philosophical Transactions of The Royal Society A Mathematical Physical and Engineering Sciences ◽

10.1098/rsta.2018.0121 ◽

2019 ◽

Vol 377 (2153) ◽

pp. 20180121 ◽

Cited By ~ 2

Author(s):

Andrew Keane ◽

Bernd Krauskopf ◽

Henk A. Dijkstra

Keyword(s):

El Niño ◽

El Nino ◽

Southern Oscillation ◽

State Dependence ◽

Dynamical Behaviour ◽

The State ◽

Delay Systems ◽

El Niño Southern Oscillation ◽

El Nino Southern Oscillation ◽

Delay Differential

Delay differential equations (DDEs) have been used successfully in the past to model climate systems at a conceptual level. An important aspect of these models is the existence of feedback loops that feature a delay time, usually associated with the time required to transport energy through the atmosphere and/or oceans across the globe. So far, such delays are generally assumed to be constant. Recent studies have demonstrated that even simple DDEs with non-constant delay times, which change depending on the state of the system, can produce surprisingly rich dynamical behaviour. Here, we present arguments for the state dependence of the delay in a DDE model for the El Niño Southern Oscillation phenomenon in the climate system. We then conduct a bifurcation analysis by means of continuation software to investigate the effect of state dependence in the delay on the observed dynamics of the system. More specifically, we show that the underlying delay-induced structure of resonance regions may change considerably in the presence of state dependence. This article is part of the theme issue ‘Nonlinear dynamics of delay systems’.

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