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Starting Wages,Hires and Separations

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Author Info
Paul Bingley (National Centre for Register-based Research, Tåsingegade 1,)
Gauthier Lanot () (Keele University, Department of Economics)

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Abstract

We study the empirical relationship between the hiring rate, separation rate and starting wages. A practical empirical model is set up and estimated on Danish matched employer-employee longitudinal data for the period 1980--1995. We find (1) firm heterogeneity is important in all dimensions of our model: starting wages, time between hires and employment length (2) matching between firms and workers is exogenous (3) friction effects in the determination of wages are very small, which suggests that the Danish labour market is close to competitive.

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File URL: http://www.keele.ac.uk/depts/ec/wpapers/kerp0302.pdf
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Publisher Info
Paper provided by Centre for Economic Research, Keele University in its series Keele Economics Research Papers with number KERP 2003/02.

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Length: 48 pages
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:kee:kerpuk:2003/02

Contact details of provider:
Postal: Department of Economics, University of Keele, Keele, Staffordshire, ST5 5BG - United Kingdom
Phone: +44 (0)1782 584581
Fax: +44 (0)1782 717577
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Web page: http://www.keele.ac.uk/depts/ec/cer/
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Postal: Centre for Economic Research, Research Institute for Public Policy and Management, Keele University, Staffordshire ST5 5BG - United Kingdom
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Web: http://www.keele.ac.uk/depts/ec/cer/pubs_kerps.htm

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Related research
Keywords: linked longitudinal employer-employee data; unobserved heterogeneity; durations; semi-parametric mixtures;

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
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis

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This page was last updated on 2009-12-9.

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