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Unemployment Benefit, Minimum Wage And Average Salary Earnings In Romania

  • Cosmin ENACHE

    ()

    (West University of Timisoara, Faculty of Economics and Business Administration, 16 J. H. Pestalozzi St., 300115, Timisoara)

Registered author(s):

    The existence of a long-run equilibrium between average salary earnings and labour market public institutions, such as unemployment benefit and minimum wage, is checked using ARDL bounds testing procedure. The results pointed out that long-run causality runs from average salary earnings to labour market public institutions and not vice versa. The short-run dynamics are depicted as well.

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    Article provided by Alexandru Ioan Cuza University, Faculty of Economics and Business Administration in its journal Review of Economic and Business Studies.

    Volume (Year): (2012)
    Issue (Month): 10 (December)
    Pages: 85-96

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    Handle: RePEc:aic:revebs:y:2012:i:10:enachec
    Contact details of provider: Postal: Universitatea Al. I. Cuza; B-dul Carol I nr. 22; Iasi
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    1. Sara lemos, 2004. "The Effects of the Minimum Wage on Wages, Employment and Prices," Discussion Papers in Economics 04/10, Department of Economics, University of Leicester.
    2. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, June.
    3. Schwert, G William, 2002. "Tests for Unit Roots: A Monte Carlo Investigation," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 5-17, January.
    4. Saikkonen, Pentti, 1992. "Estimation and Testing of Cointegrated Systems by an Autoregressive Approximation," Econometric Theory, Cambridge University Press, vol. 8(01), pages 1-27, March.
    5. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, vol. 64(4), pages 813-36, July.
    6. Zvi Eckstein & Suqin Ge & Barbara Petrongolo, 2011. "Job and wage mobility with minimum wages and imperfect compliance," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 580-612, 06.
    7. Dale T. Mortensen, 1977. "Unemployment insurance and job search decisions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(4), pages 505-517, July.
    8. Albert van der Horst, 2003. "Structural Estimates of Equilibrium Unemployment in Six OECD Economies," Economics Working Papers 022, European Network of Economic Policy Research Institutes.
    9. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    10. Bassanini, Andrea, 2012. "Aggregate Earnings and Macroeconomic Shocks: The Role of Labour Market Policies and Institutions," IZA Discussion Papers 6918, Institute for the Study of Labor (IZA).
    11. Bruce E. Kaufman, 2010. "Institutional Economics and the Minimum Wage: Broadening the Theoretical and Policy Debate," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 63(3), pages 427-453, April.
    12. Bruce E. Kaufman, 2010. "Institutional Economics and the Minimum Wage: Broadening the Theoretical and Policy Debate," ILR Review, Cornell University, ILR School, vol. 63(3), pages 427-453, April.
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