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Institutions and Labor Reallocation

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  • bertola, G.
  • Rogerson, R.

Abstract

Despite stringent dismissal restrictions in most European countries, rates of job creation and destruction are remarkably similar in European and Noeth American labor markets. This paper shows that relative-wage compression is conducive to higher employer-initiated job turnover, and argues that wage setting institutions and job-security provisions differ across countries that are both consistent with rough uniformity of job turnover statistics and readily explained by by inuitive theoretical considerations.

Suggested Citation

  • bertola, G. & Rogerson, R., 1996. "Institutions and Labor Reallocation," Papers 272, Banca Italia - Servizio di Studi.
    • Handle: RePEc:fth:banita:272
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    More about this item

    Keywords

    LABOUR MARKET; WAGES;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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