Wage Dispersion and Job Turnover: Evidence from Sweden
AbstractThis paper uses Swedish establishment-level panel data to test the hypothesis of a positive relation between the degree of wage compression and job reallocation as proposed by Bertola and Rogerson (1997). The effect of wage dispersion on job turnover is negative and significant in the manufacturing sector. The wage com-pression effect is stronger on job destruction than on job creation, suggesting that wages are more downward than upward rigid. Further results include (i) a strong positive relationship between the industry share of temporary employees and job turnover and (ii) a negative relationship between the amount of working-time flexibility and job reallocation.
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Bibliographic InfoPaper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 181.
Length: 28 pages
Date of creation: 11 Nov 2002
Date of revision:
Note: This paper is Chapter 2 of my 2002 Stockholm School of Economics Ph.D. thesis.
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Job creation and job destruction; Wage dispersion; Temporary employment contracts; Panel data;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
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- Gómez-Salvador, Ramón & Messina, Julián & Vallanti, Giovanna, 2004.
"Gross job flows and institutions in Europe,"
Working Paper Series
0318, European Central Bank.
- Lundborg, Per, 2005. "Wage Theories for the Swedish Labour Market," Working Paper Series 207, Trade Union Institute for Economic Research.
- Selén, Jan & Ståhlberg, Ann-Charlotte, 2004. "Wage and Compensation Inequality — How Different?," Working Paper Series 197, Trade Union Institute for Economic Research.
- Lundborg, Per, 2005. "Wage Fairness, Growth and the Utilization of R&D Workers," Working Paper Series 206, Trade Union Institute for Economic Research.
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