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Essays on labour demand and wage formation

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  • Korkeamäki, Ossi

Abstract

The first essay in this thesis is on gender wage differentials among manufacturing sector white-collar workers. The wage differential is decomposed into firm, job (within-firm) and individual-level components. Job-level gender segregation explains over half of the gap, while firm-level segregation is not important. After controlling for firm, job and individual characteristics, the remaining unexplained wage cap to the advantage of men is six per cent of men's mean wage. In the second essay, I study how the business cycle and gender affect the distribution of the earnings losses of displaced workers. The negative effect of displacement is large, persistent and strongest in the lowest earnings deciles. The effect is larger in a recession than in a recovery period, and in all periods women's earnings drop more than men's earnings. The third essay shows that the transition from steady employment to disability pension depends on the stringency of medical screening and the degree of experience-rating of pension costs applied to the employer. The fact that firms have to bear part of the cost of employees' disability pension costs lowers both the incidence of long sick leave periods and the probability that sick leave ends in a disability pension. The fourth and fifth essays are studies on the employment, wage and profit effects of a regional payroll tax cut experiment conducted in northern and eastern Finland. The results show no statistically significant effect on any of the response variables.

Suggested Citation

  • Korkeamäki, Ossi, 2012. "Essays on labour demand and wage formation," Research Reports P60, VATT Institute for Economic Research.
    • Handle: RePEc:fer:resrep:p60
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    File URL: https://www.doria.fi/handle/10024/148895
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    References listed on IDEAS

    as
    1. Kirjavainen, Tanja, 2009. "Essays on the efficiency of schools and student achievement," Research Reports P53, VATT Institute for Economic Research.
    2. Kosonen, Tuomas, 2011. "Encouragement and discouragement. Essays on taxation and government expenditure," Research Reports 57, VATT Institute for Economic Research.
    3. Daniel Aaronson & Eric French, 2007. "Product Market Evidence on the Employment Effects of the Minimum Wage," Journal of Labor Economics, University of Chicago Press, vol. 25(1), pages 167-200.
    4. Daniel Aaronson, 2001. "Price Pass-Through And The Minimum Wage," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 158-169, February.
    5. Kosonen, Tuomas, 2011. "Encouragement and discouragement. Essays on taxation and government expenditure," Research Reports P57, VATT Institute for Economic Research.
    6. Honkatukia, Juha, 2011. "Three takes on sustainability," Research Reports P58, VATT Institute for Economic Research.
    7. Kirjavainen, Tanja, 2009. "Essays on the efficiency of schools and student achievement," Research Reports 53, VATT Institute for Economic Research.
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