Paradoxes of reservation wage setting in the Russian labor market. Part II

2016 ◽  
pp. 94-110 ◽  
Author(s):  
R. Kapeliushnikov ◽  
A. Lukyanova

Using panel data from the Russian Longitudinal Monitoring Survey for 2006-2014, the paper investigates reservation wages setting in the Russian labor market. The second part of the paper provides an econometric analysis of main determinants of reservation wages. It shows that personal characteristics, household income, unemployment duration and characteristics of local labor markets are important factors that affect reservation wage setting. The findings also indicate that non-employed individuals with higher reservation wages have higher probability of re-employment and receive higher wages on their new jobs. A general conclusion is that Russian workers set reservation wages in economically rational way taking into account their real prospects in the labor market.

2016 ◽  
pp. 5-27
Author(s):  
R. Kapeliushnikov ◽  
A. Lukyanova

Using panel data from the Russian Longitudinal Monitoring Survey for 2006-2014, the paper investigates reservation wages setting in the Russian labor market. The sample includes non-employed individuals wishing to get a job (both searchers and non-searchers). The first part of the paper provides a survey of previous empirical studies, describes data and analyzes subjective estimates of reservation wages in comparison with various objective indicators of actual wages. The analysis shows that wage aspirations of the majority of Russian non-employed individuals are overstated. However their wage expectations are rather flexible and decrease rapidly as the search continues that prevents high long-term unemployment. The second part of the paper provides an econometric analysis of main determinants of reservation wage and its impact on probability of re-employment and wages on searchers’ new jobs.


2019 ◽  
Vol 10 (1) ◽  
pp. 120
Author(s):  
Tereza Kochovska

This study investigates the reservation wage along with the unemployment duration of the youth in five countries from three groups of countries, the MENA countries, the WB countries and the CIS countries. The study assesses the determinants of the reservation wage and in particular how it is related to unemployment duration. The data comes from the School to Work Transition Survey in 2015 which is a survey that is labor market designed and includes labor market information on young people aged 15 to 29 years. The Two Stage Least Square (2SLS) model is conducted by using instrumental variables. This technique is used since we suspect that ednogeneity between the reservation wage and the unemployment duration is possible in our model. The results suggest the interplay between the reservation wage and the unemployment duration is countercyclical, the longer the unemployment duration the lower the reservation wage. Youth that lives in a household that receives other sources of income and remittances have lower reservation wages and youth that comes from a household with good financial situation and receives governmental financial assistance have higher reservation wages. Married youth with children have higher reservation wage and lower unemployment duration and more educated and trained youth has higher reservation wage.


Author(s):  
Dorota Kmieć

The paper attempts to identify the causes of unemployment among the rural population. Logit model was used to determine the size of the impact of explanatory factors examined the situation in the labor market. The following potential predictors were considered: socio-demographic characteristics and household income, improving one’s skills through training and personal competencies.


Author(s):  
Marcel Fratzscher

After reaching a low point of economic dynamism and employment in 2005, a state of affairs in which it came to be regarded as the “sick man of Europe,” Germany achieved impressive, indeed apparently miraculous growth in employment. In the process German society cut unemployment in half and created almost 5 million new jobs. In this chapter’s discussion, the primary focus is on the different elements and causes that have gone into the employment miracle in Germany since the start of the twenty-first century. In addition, the chapter highlights the underlying weaknesses and problems in Germany’s labor market as the century’s second decade nears its close.


Author(s):  
Philippe Askenazy ◽  
Bruno Palier

This chapter describes France as apparently one of the few rich countries to have avoided a significant increase in income inequality in recent decades. However, stable average inequalities mask an asymmetric trend of income between age groups, the elderly improving their situation while the young see theirs worsening. Furthermore, it shows that behind this relatively still surface, a general trend of precarization of more and more ordinary workers is occurring. The importance of wage-setting processes and of regulation of the labour market is brought out, together with the way the tax and transfer systems have operated, in restraining the forces driving inequality upwards. Wage growth, while limited, has thus been reasonably uniform across the distribution and together with the redistributive system have kept household income inequality within bounds. However, in response to high unemployment both regulatory and tax–transfer systems have served to underpin the very rapid growth in precarious working over the last decade, representing a very serious challenge for policy.


Author(s):  
Sauro Mocetti

Abstract This paper contributes to the growing number of studies on intergenerational mobility by providing a measure of earnings elasticity for Italy. The absence of an appropriate data set is overcome by adopting the two-sample two-stage least squares method. The analysis, based on the Survey of Household Income and Wealth, shows that intergenerational mobility is lower in Italy than it is in other developed countries. We also examine the reasons why the long-term labor market success of children is related to that of their fathers.


Author(s):  
Satar Rezaei ◽  
Abraha Woldemichael ◽  
Mohammad Ebrahimi ◽  
Sina Ahmadi

Abstract Background Equity in the distribution of health care resources and mitigating the risk of out-of-pocket (OOP) catastrophic healthcare expenditures (CHE) are the major objectives of the health system of a country. This study aims to measure equity in OOP payments for healthcare and the incidence of CHE among Iranian households over time. Methods This retrospective cross-sectional study utilized data extracted from the household income and expenditure survey (HIES) of Iran, collected by the Statistical Center of Iran. The analysis included a total of 174,341 households’ five yearly data of 6 years starting from 1991 to 2017. Kakwani progressivity index (KPI) was used to measure the equity in OOP payment for each year and examine the households’ incidence of CHE at 20%, 30%, and 40% of their capacities to pay (CTP). The trend series regression analysis was used to examine the trend in the KPI and the incidence of the CHE over time. Results The findings indicated that the households’ expenditure on health out of their monthly budgets for the years 1991 and 2017 were 2.1% and 10.1%, respectively. The KPI for the OOP payment was negative for all 6-year observations (1991 = − 0.680; 1996 = − 0.608; 2001 = − 0.554; 2006 = − 0.265; 2011 = − 0.225, and 2017 = − 0.207), indicating that the OOP payments for healthcare are regressive and more concentrated among the socioeconomically disadvantaged households. There was a statistically significant (p = 0.003) increase in the KPI (i.e., decline in the regressivity) over time. The incidence of the CHE (1.12, 1.93, and 3.71%) in 1991 at the CTP levels of 20%, 30%, and 40% was lower than the incidence at the corresponding levels of CTP (5.26, 10.88, and 22.16) in 2017. The findings of the time-series regression indicated a statistically significant (p < 0.05) increase in the incidence of the CHE at the 20%, 30%, and 40% levels of the households’ CTP. Conclusions The current study demonstrated that OOP payment as a source of healthcare funding in Iran is inequitable. While the use of interventions such as the prepaid and publicly funded programs may contribute to the reduction of CHE and improvement of equity in healthcare financing, further inequality analyses in the incidence of the CHE among households and its main determinants can contribute to evidence-informed planning to reduce the CHE in the context.


2003 ◽  
Vol 4 (2) ◽  
pp. 139-150 ◽  
Author(s):  
Pilar Díaz-Vázquez ◽  
Dennis J. Snower

Abstract Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional answer in the theoretical literature is that insider power has no influence on employment, provided that the newly hired employees (entrants) receive their reservation wages. The reason given is that an increase in insider wages gives rise to a countervailing fall in reservation wages, leaving the present value of wage costs unchanged. Our analysis contradicts this conventional answer. We show that, in the context of a stochastic model of the labor market, an increase in insider wages promotes firing in recessions, while leaving hiring in booms unchanged. Thereby insider power reduces average employment.


2021 ◽  
pp. 019791832110405
Author(s):  
Stephan Brunow ◽  
Oskar Jost

The German Council of Economic Experts (GCEE) argues for a labor market-driven immigration of skilled migrants into Germany to overcome a decline in workforce due to demographic ageing. We pick up this current debate on skilled immigration by analyzing the migrant-native wage differential for skilled workers in Germany and consider various information on firms. Our results indicate that the wage gap is mainly explained by observable characteristics, especially labor market experience and firm characteristics. However, we find lower rewards for migrants’ labor market experience than for natives (flatter experience curves). Our results show that these differences in experience curves become negligible in the long run. Moreover, we reveal firms’ wage-setting policies: Firms evaluate a worker's education independent of migration backgrounds, as migrants possess the same productivity levels as their German counterparts in the same occupations and task levels. Due to Germany's heterogeneous immigration structure, we are able to compare the results for different migrant subgroups and, thus, derive valuable insights into the migrant-native wage structure with a wide reach beyond Germany. This article adds to current debates in various industrialized countries with demographic ageing patterns, as it focuses on an important group for domestic labor markets: skilled immigrants.


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