scholarly journals Labor Taxes, Wage Setting and the Relative Wage Effect

2002 ◽  
Author(s):  
Giorgio Brunello ◽  
Maria Laura Parisi ◽  
Daniela Sonedda
Keyword(s):  
Relative Wage ◽  
Wage Setting ◽  
Wage Effect ◽  
Labor Taxes

Wage Adjustment, Competitiveness and Unemployment – East Germany after Unification

2009 ◽  
Vol 229 (2-3) ◽  
Author(s):  
Werner Smolny
Keyword(s):  
Labor Market ◽  
East Germany ◽  
German Economy ◽  
West Germany ◽  
Relative Wage ◽  
Wage Setting ◽  
East And West Germany ◽  
Market Situation ◽  
East German ◽  
Wage Adjustment

SummaryNearly 20 years after unification large differences of the labor market situation in East and West Germany persist. Wages are still considerably lower, the unemployment rate is about twice of the West German level, and the competitiveness of the East German economy seems to be low. This paper analyzes the process of (relative) wage adjustment in East Germany and the resulting development of competitiveness and unemployment differentials. We present estimates of the wage adjustment in East vs. West Germany based on wage convergence and effects of unemployment on wage growth. The central focus of the paper is the empirical analysis of the interaction of the development of competitiveness and the labor market situation. The results reveal large equilibrium gaps for wages and unemployment which are based on the wage-setting process, the behavior of competitiveness and the adjustment of unemployment.

Right-To-Work Legislation and the Economic Position of Black Workers

1987 ◽  
Vol 15 (4) ◽  
pp. 79-88
Author(s):  
Paul W. Grimes
Keyword(s):  
Employment Effect ◽  
Relative Wage ◽  
Economic Power ◽  
Black Workers ◽  
Cross Sectional ◽  
Wage Effect ◽  
Relative Employment ◽  
Right To Work ◽  
Economic Position ◽  
Union Shop

Recent empirical analysis of state right-to-work legislation indicates that a negative wage effect may result as a consequence of banning union shop contracts. It has been previously shown that industrial unionism tends to improve the relative wage position of black workers. Thus, it is hypothesized that if state right-to-work laws weaken the economic power of unions to raise wages, black workers will experience a disproportionate decline in their relative wage position. Black workers in right-to-work states would therefore experience a reduction in their relative economic position unless a strong positive relative employment effect occurs in response to the decline in wages. Using a cross-sectional regression model this article examines the relative employment effect due to right-to-work legislation. The results indicate that black workers experience a statistically significant decline in their relative employment rate within right-to-work states. When this finding is coupled with the hypothesized negative wage effect, it is concluded that right-to-work legislation results in a worsening of the net economic position of black workers.

THE EFFECTS OF DEMAND ON THE UNION RELATIVE WAGE EFFECT IN THE UNITED KINGDOM

1978 ◽  
Vol 16 (3) ◽  
pp. 303-308
Author(s):  
D. Demery ◽  
R. McNabb
Keyword(s):  
United Kingdom ◽  
Relative Wage ◽  
Wage Effect ◽  
The United Kingdom

scholarly journals Labor Tax Progressivity, Wage Determination, and the Relative Wage Effect

2002 ◽  
Author(s):  
Giorgio Brunello ◽  
Daniela Sonedda
Keyword(s):  
Relative Wage ◽  
Wage Determination ◽  
Tax Progressivity ◽  
Wage Effect ◽  
Labor Tax

The Union Relative Wage Effect for Academic Librarians

2006 ◽  
Vol 45 (3) ◽  
pp. 478-484 ◽  
Author(s):  
DEBORAH O. LEE ◽  
KEVIN E. ROGERS ◽  
PAUL W. GRIMES
Keyword(s):  
Relative Wage ◽  
Academic Librarians ◽  
Wage Effect

The Relative Wage Effect of French Unions

1984 ◽  
pp. 63-81
Author(s):  
Jean-François Hennart
Keyword(s):  
Relative Wage ◽  
Wage Effect

scholarly journals Migration and Regional Wage Disparities in Germany

2016 ◽  
Vol 236 (1) ◽  
Author(s):  
Tanja Fendel
Keyword(s):  
Relative Wage ◽  
High Wage ◽  
Panel Estimation ◽  
Regional Migration ◽  
Domestic Migration ◽  
Wage Effect ◽  
Regional Labor Market ◽  
Adjustment Mechanism ◽  
Regional Labor ◽  
Wage Disparities

AbstractThis study provides an analysis of the effect of migration and commuting on regional wage disparities in Germany. Using the INKAR dataset and the GSOEP from the years 1998 to 2009, dynamic GMM panel estimations are applied to consider dynamics as well as the simultaneity between migration and regional labor market circumstances. To begin with, the influence of migration on relative wage levels is analyzed. The results show a small positive wage effect due to the overall regional migration balance. However, only domestic migration is relevant for analyzing the influence of migration on regional wage disparities. The wage effect due to domestic migration turns out to be smaller and negative. Regions seem to benefit primary from a combination of internal and foreign migration, however effects are small. Assuming that individuals usually move to high-wage regions, the negative wage effect of German migration would trigger an adjustment mechanism of wage disparities. Therefore, a second dynamic GMM panel estimation tests whether an influence of the regional wage levels on migration exists. Results show no statistically significant effects. An adjustment of existing wage disparities due to migration is not likely to occur in Germany in the next few years.

scholarly journals Labor Unions and the Distribution of Wages and Employment in South Africa

ILR Review ◽  
1998 ◽  
Vol 51 (4) ◽  
pp. 680-703 ◽  
Author(s):  
T. Paul Schultz ◽  
Germano Mwabu
Keyword(s):  
South Africa ◽  
Wage Inequality ◽  
Wage Gap ◽  
Participation Rate ◽  
Wage Distribution ◽  
Relative Wage ◽  
Wage Effect ◽  
Percentage Points ◽  
African Youth ◽  
White Workers

Few countries have higher wage inequality than South Africa, where wages of African and white workers differ by a factor of five. Using survey data collected in 1993, the authors analyze the complex effect of unions on this wage gap. Among male African workers in the bottom decile of the wage distribution, union membership was associated with wages that were 145% higher than those of comparable nonunion workers, and among those in the top decile the differential was 19%. Regression estimates also indicate that returns to observed productive characteristics of workers, such as education and experience, were larger for nonunion than union workers. If the large union relative wage effect were cut in half, the authors estimate that employment of African youth, age 16–29, would increase by two percentage points, and their labor force participation rate would also increase substantially.

scholarly journals Wages and the Value of Nonemployment*

2020 ◽  
Vol 135 (4) ◽  
pp. 1905-1963 ◽  
Author(s):  
Simon Jäger ◽  
Benjamin Schoefer ◽  
Samuel Young ◽  
Josef Zweimüller
Keyword(s):  
Unemployment Insurance ◽  
Unemployment Duration ◽  
Nash Bargaining ◽  
Bargaining Model ◽  
Wage Setting ◽  
Outside Option ◽  
Wage Effect ◽  
Point Estimates ◽  
Experimental Variation ◽  
Quasi Experimental

Abstract Nonemployment is often posited as a worker’s outside option in wage-setting models such as bargaining and wage posting. The value of nonemployment is therefore a key determinant of wages. We measure the wage effect of changes in the value of nonemployment among initially employed workers. Our quasi-experimental variation in the value of nonemployment arises from four large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit changes: point estimates imply a wage response of less than $0.01 per $1.00 UI benefit increase, and we can reject sensitivities larger than $0.03. The insensitivity holds even among workers with low wages and high predicted unemployment duration, and among job switchers hired out of unemployment. The insensitivity of wages to the nonemployment value presents a puzzle to the widely used Nash bargaining model, which predicts a sensitivity of $0.24–$0.48. Our evidence supports wage-setting models that insulate wages from the value of nonemployment.

Wage-setting Mechanisms in the Russian Industry

2004 ◽  
pp. 66-90 ◽  
Author(s):  
R. Kapelyushnikov
Keyword(s):  
Special Section ◽  
Close Correlation ◽  
Specific Model ◽  
Wage Determination ◽  
Collective Agreement ◽  
Wage Setting ◽  
Industrial Enterprises ◽  
Subsistence Minimum ◽  
Competitive Model ◽  
Very High

The paper examines a specific model of wage-setting evolved in Russia under transition. Using new survey data author reveals paradoxical characteristics of wage-setting mechanisms at Russian industrial enterprises: very high union and collective agreement coverage; nearly unilateral control of managers over wage determination; close correlation between earnings and enterprises' performance; voluntary utilization of wage standards established by the state. The special section explores effects of fulfilling a new provision stipulated for by the recently adopted Labor Code to raise minimum wage to the subsistence minimum level. The author concludes that wage-setting in the Russian labor market is at odds with a textbook competitive model and poorly fits into many other sophisticated theoretical schemes (such as labor-managed firms, bargaining models etc.).

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