An explorative empirical analysis of the influence of labour flows on wage formation using the Johansen approach

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An explorative empirical analysis of the influence of labour flows on wage formation using the Johansen approach

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Broersma, Lourens (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
Butter, Frank A.G. den

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Frank A.G. Den Butter

Abstract

This study presents an explorative econometric analysis of the influence of labour market flows on wage formation. It applies the vector cointegration and common trends methodology of Johansen (1995). According to this approach, a combination of the flow of layoffs (flow from employment to unemployment) and the flow of filled vacancies (successful matches) appears to be an adequate alternative to the unemployment rate as indicator of labour market tightness in the wage equation for The Netherlands.

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Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0059.

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Date of creation: 1999
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Handle: RePEc:dgr:vuarem:1999-59

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs

This paper has been announced in the following NEP Reports:

NEP-ALL-2002-03-14 (All new papers)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

David G. Blanchflower & Andrew J. Oswald, 1990. "The Wage Curve," NBER Working Papers 3181, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Blanchflower, D. & Oswald, A., 1989. "The Wage Curve," Papers 340, London School of Economics - Centre for Labour Economics.
- Blanchflower, David G & Oswald, Andrew J, 1990. " The Wage Curve," Scandinavian Journal of Economics, Blackwell Publishing, vol. 92(2), pages 215-35.
- David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x.
Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November. [Downloadable!] (restricted)
Hassink, Wolter & Broersma, Lourens, 1996. "Labour Demand and Job-to-Job Movement," Applied Economics, Taylor and Francis Journals, vol. 28(8), pages 957-65, August. [Downloadable!] (restricted)
Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, vol. 50(4), pages 987-1007, July. [Downloadable!] (restricted)

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L. Broersma & Frank A.G. den Butter & Udo Kock, 2003. "A Cointegration Model for Search Equilibrium Wage Formation," Tinbergen Institute Discussion Papers 03-088/3, Tinbergen Institute. [Downloadable!]
Other versions:
- Lourens Broersma & F. A. G. den Butter & Udo Kock, 2004. "A Cointegration Model for Search Equilibrium Wage Formation," IMF Working Papers 04/92, International Monetary Fund. [Downloadable!]
- Lourens Broersma & Frank A. G. den Butter & Udo Kock, 2006. "A cointegration model for search equilibrium wage formation," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 235-254, November. [Downloadable!] (restricted)

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