Wage Persistence and Labour Market Institutions: An Analysis of Young European Workers
AbstractThis paper investigates the effects of labour market institutions on wage persistence among young European workers at the beginning of their careers. We use ECHP data from 1995 to 2001 for 13 EU countries and estimate a three-level random intercept probit model that allows for unobserved heterogeneity both at the individual and country level. Overall, we find that labour market institutions explain wage persistence. In particular, we find that a high level of employment protection legislation and a high level of bargaining centralization increase wage persistence.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2627.
Length: 13 pages
Date of creation: Feb 2007
Date of revision:
Publication status: published in: Applied Economics Letters, 2011, 18 (9), 823 - 828
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Other versions of this item:
- A. G. Menezes & D. Sciulli & J. C. Vieira, 2011. "Wage persistence and labour market institutions: an analysis of young European workers," Applied Economics Letters, Taylor & Francis Journals, vol. 18(9), pages 823-828.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-31 (All new papers)
- NEP-EEC-2007-03-31 (European Economics)
- NEP-LAB-2007-03-31 (Labour Economics)
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.:
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