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The Dynamics of Wages and Employment

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  • Leonard, Jonathan S.
  • Van Audenrode, Marc

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Abstract

In this paper, we demonstrate substantial heterogeneity in wage growth across firms within industry, and across workers within firm in Belgium. This variation does not appear to be consistent with simple measurement error stories, but rather seems to be evidence of a more complex labor market. We also empirically show how different the wage and employment adjustment process looks at different levels of aggregation. Dans ce travail, nous montrons le haut niveau d'hétérogénéité dans la croissance des salaires entre firmes d'une même industrie et entre travailleurs d'une même firme. Ces différences ne semblent pas être causées par de l'erreur de mesure, mais semblent plutôt indicatrice de l'existence d'un marché du travail complexe. Nous montrons également les différences entre les processus d'ajustement de l'emploi et des salaires à différents niveau d'agrégation.

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File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/1998/9806.pdf
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Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 9806.

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Date of creation: 1998
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Handle: RePEc:lvl:laeccr:9806

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