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Wage Flexibility in Regional Labour Markets: Evidence from Italy and Germany

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Author Info

  • Andreas Ammermuller
  • Claudio Lucifora
  • Federica Origo
  • Thomas Zwick

Abstract

Ammermuller A., Lucifora C., Origo F. and Zwick T. Wage flexibility in regional labour markets: evidence from Italy and Germany, Regional Studies. This paper investigates the functioning of regional labour markets in Italy and Germany for different employee groups and regions. It derives theoretical hypotheses on group-specific correlations between regional unemployment and individual wages distinguishing between regions. Using micro-data matched to local unemployment rates, wage equations are specified and empirically tested. For Italy, no evidence is found in favour of a relationship between wages and local unemployment. In Germany, results appear to be sensitive to model specification and type of employees. In both countries, the reaction of wages to local unemployment varies significantly along the wage distribution, being more sensitive around median quantiles. [image omitted] Ammermuller A., Lucifora C., Origo F. et Zwick T. La flexibilite des salaires dans les marches du travail regionaux: des preuves provenant de l'Italie et de l'Allemagne, Regional Studies. Cet article cherche a examiner les rouages des marches du travail regionaux en Italie et en Allemagne pour des regroupements de salaries et de regions differents. Pour des groupes specifiques on elabore des hypotheses theoriques sur la correlation du chomage regional avec les salaires individuels en distinguant entre les regions. A partir des donnees microeconomiques assorties aux taux de chomage locaux, on precise et teste de facon empirique des equations sur les salaires. Pour l'Italie, il ne s'avere aucune preuve en faveur d'un rapport entre les salaires et le chomage local. En Allemagne, les resultats s'averent sensibles a la specification du modele et a la categorie socio-professionnelle. Dans les deux pays, la reponse des salaires au chomage local varie sensiblement le long de la distribution des salaires, etant plus sensible autour des quantiles medians. Courbe des salaires Marches du travail locaux Regressions des quantiles Ammermuller A., Lucifora C., Origo F. und Zwick T. Lohnflexibilitat in regionalen Arbeitsmarkten: Belege aus Italien und Deutschland, Regional Studies. In diesem Beitrag untersuchen wir die Funktionsweise regionaler Arbeitsmarkte in Italien und Deutschland fur verschiedene Arbeitnehmergruppen und Regionen. Wir leiten theoretische Hypothesen uber gruppenspezifische Korrelationen zwischen regionaler Arbeitslosigkeit und individuellen Lohnen ab, wobei wir zwischen den einzelnen Regionen unterscheiden. Anhand von auf die lokalen Arbeitslosenquoten abgestimmten Mikrodaten stellen wir Einkommensgleichungen auf und unterziehen sie einer empirischen U�berprufung. Fur Italien konnten wir keine Anzeichen fur eine Beziehung zwischen Lohnen und lokaler Arbeitslosigkeit feststellen. In Deutschland scheinen die Ergebnisse von der Spezifikation des Modells und von der Art der Arbeitnehmer abzuhangen. In beiden Landern variiert die Reaktion der Lohne auf die lokale Arbeitslosigkeit signifikant entlang der Lohnverteilung, wobei im Bereich der medianen Quantile die hochste Sensitivitat festzustellen ist. Lohnkurve Lokale Arbeitsmarkte Quantile Regressionen Ammermuller A., Lucifora C., Origo F. y Zwick T. Flexibilidad de salarios en los mercados laborales regionales: el ejemplo de Italia y Alemania, Regional Studies. En este articulo analizamos el funcionamiento de los mercados laborales regionales de Italia y Alemania para diferentes grupos de empleados y regiones. Distinguiendo entre las distintas regiones, derivamos hipotesis teoreticas sobre las correlaciones de grupos especificos entre el desempleo regional y los diferentes salarios individuales. Usando micro-datos adaptados a las tasas de desempleo local, especificamos y comprobamos empiricamente las ecuaciones de salarios. Para Italia no observamos muestras a favor de una relacion entre salarios y desempleo local. En Alemania los resultados parecen ser sensibles a la especificacion del modelo y el tipo de empleados. En ambos paises varia significativamente la reaccion de los salarios al desempleo local en la distribucion de salarios siendo mas sensible en los cuantiles medios. Curva salarial Mercados laborales locales Regresiones cuantiles

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 44 (2010)
Issue (Month): 4 ()
Pages: 401-421

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Handle: RePEc:taf:regstd:v:44:y:2010:i:4:p:401-421

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Related research

Keywords: Wage curve; Local labour markets; Quantile regressions;

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Citations

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Cited by:
  1. Martin Falk & Thomas Leoni, 2011. "Estimating the Wage Curve with Spatial Effects and Spline Functions," Economics Bulletin, AccessEcon, vol. 31(1), pages 591-604.
  2. Fei Peng & Lili Kang, 2013. "Labor Market Institutions and Skill Premiums: An Empirical Analysis on the UK, 1972-2002," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 47(4), pages 959-982, December.
  3. DESTEFANIS, Sergio & PICA, Giovanni, 2011. "The Wage Curve an Italian Perspective," CELPE Discussion Papers 117, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  4. Ipek Ilkkaracan & Haluk Levent & Sezgin Polat, 2013. "Exploring different measures of wage flexibility in a developing economy context: the case for Turkey," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(3), pages 297-315, May.
  5. Roberto Bande Ramudo & Melchor Fernández Fernández & Víctor Montuenga Gómez, 2011. "Wage flexibility and local labour markets: homogeneity of the wage curve in Spain," Documentos de trabajo - Analise Economica 0044, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  6. Kang, Lili & Peng, Fei, 2012. "Selection and Real wage cyclicality: Germany Case," MPRA Paper 42452, University Library of Munich, Germany.
  7. Peng, Fei & Kang, Lili, 2013. "Wage Flexibility in Chinese Labor Market 1989-2009," MPRA Paper 46651, University Library of Munich, Germany.
  8. García-Mainar , Inmaculada & Montuenga-Gómez , Víctor M., 2012. "Wage dynamics in Spain: evidence from individual data (1994-2001)," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 24, pages 41-58.

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