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The Golden Age of Economic Growth: Why Did Northern Ireland Miss Out?

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Author Info
Crafts, Nicholas

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Abstract

In this paper we examine the persistent effects of past wages of displaced workers on the probability of finding a new job and on wages in the new job. We use a new database looking at the post-displacement experience of a sample of Belgian workers who have lost their jobs because of a sizeable reduction in the work-force of their firm. We decompose past wages into a market return to human capital, a firm-specific component (the `firm effect'), and an individual component. We develop an information model of wages and test its predictions. These predictions are validated by the evidence on subsequent wages. We also find that spells of unemployment are long, but that re-employed workers suffer limited wage losses on re-employment. This suggests that some institutional constraints prevent wages from falling.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1209.

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Date of creation: Aug 1995
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Handle: RePEc:cpr:ceprdp:1209

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Related research
Keywords: Economic Growth; Northern Ireland; Peripherality; Supply-Side;

Find related papers by JEL classification:
N14 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Europe: 1913-
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

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This page was last updated on 2009-12-31.

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