Wage restraint and volatility in labor markets
AbstractThis paper studies the notion that a rise in job insecurity, due to rising labor market uncertainty, leads to wage moderation - the ‘wage restraint hypothesis’. It begins by finding only mixed theoretical support for this hypothesis, as an increase in uncertainty generates an ambiguous effect on wages, although it raises job insecurity. Then, using industry data, it finds evidence of wage restraint, as volatility significantly lowers the share of(production) wages in value added.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 05-001.RS.
Length: 28 p.
Date of creation: Mar 2005
Date of revision:
Publication status: Published by: Centre Emile Bernheim
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More information through EDIRC
Job-insecurity; Globalization; Wage Contracts; Volatility.;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
- NEP-LAB-2006-02-05 (Labour Economics)
- NEP-MAC-2006-02-05 (Macroeconomics)
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