IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v34y2002i2p179-195.html
   My bibliography  Save this article

Institutional determinants of the unemployment-earnings inequality trade-off

Author

Listed:
  • Luis Ayala
  • Rosa Martinez
  • Jesus Ruiz-Huerta

Abstract

Most of the research efforts in recent years to explain international differences in unemployment and earnings inequality have placed the emphasis on the institutional components of the labour markets. The purpose of this paper is to evaluate which are the real effects of these characteristics on both phenomena using an ample set of data for different OECD countries. A Cluster analysis permits consideration about relatively heterogeneous models. The results of the econometric exercise show also that institutional factors have a greater impact on earnings inequality than on unemployment.

Suggested Citation

  • Luis Ayala & Rosa Martinez & Jesus Ruiz-Huerta, 2002. "Institutional determinants of the unemployment-earnings inequality trade-off," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 179-195.
  • Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:179-195
    DOI: 10.1080/00036840010031464
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010031464
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John M. Abowd & Francis Kramarz & Thomas Lemieux & David N. Margolis, 2000. "Minimum Wages and Youth Employment in France and the United States," NBER Chapters,in: Youth Employment and Joblessness in Advanced Countries, pages 427-472 National Bureau of Economic Research, Inc.
    2. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    3. Machin, Steve & Van Reenen, John, 1996. "Technology and Changes in Skill Structure: Evidence from an International Panel of Industries," CEPR Discussion Papers 1434, C.E.P.R. Discussion Papers.
    4. Olivier Blanchard & Lawrence F. Katz, 1997. "What We Know and Do Not Know about the Natural Rate of Unemployment," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 51-72, Winter.
    5. Jackman, R. & Layard, R. & Nickell, S., 1996. "Combatting unemployment: is flexibility enough?," LSE Research Online Documents on Economics 47446, London School of Economics and Political Science, LSE Library.
    6. David Card & Francis Kramarz & Thomas Lemieux, 1999. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 843-877, August.
    7. Simon Milner & David Metcalf, 1994. "Spanish Pay Setting Institutions and Performance Outcomes," Working Papers 9420, Banco de España;Working Papers Homepage.
    8. David Card & Richard B. Freeman, 1993. "Introduction to "Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States"," NBER Chapters,in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 1-20 National Bureau of Economic Research, Inc.
    9. David Card & Richard B. Freeman, 1993. "Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States," NBER Books, National Bureau of Economic Research, Inc, number card93-1.
    10. David Metcalf & S Milner, 1994. "Spanish Pay Setting Institutions and Performance Outcomes," CEP Discussion Papers dp0198, Centre for Economic Performance, LSE.
    11. Rebecca M. Blank, 1994. "Introduction to "Social Protection versus Economic Flexibility: Is There a Trade-Off?"," NBER Chapters,in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 1-20 National Bureau of Economic Research, Inc.
    12. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1.
    13. Rebecca M. Blank, 1994. "Social Protection versus Economic Flexibility: Is There a Trade-Off?," NBER Books, National Bureau of Economic Research, Inc, number blan94-1.
    14. Richard B. Freeman, 1994. "Working Under Different Rules," NBER Books, National Bureau of Economic Research, Inc, number free94-1.
    15. Freeman, Richard B. & Katz, Lawrence F. (ed.), 1995. "Differences and Changes in Wage Structures," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261607, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tregenna, F., 2009. "The Relationship Between Unemployment and Earnings Inequality in South Africa," Cambridge Working Papers in Economics 0907, Faculty of Economics, University of Cambridge.
    2. Ayala, Luis & Sastre, Mercedes, 2002. "What determines income mobility differences across the European Union?," ISER Working Paper Series 2002-27, Institute for Social and Economic Research.
    3. Andrés Rodríguez-Pose & Vassilis Tselios, 2009. "Education And Income Inequality In The Regions Of The European Union," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 411-437.
    4. Joël Hellier & Nathalie Chusseau, 2010. "Globalization and the Inequality-Unemployment Tradeoff," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 1028-1043, November.
    5. Jesus Perez-Mayo, 2005. "Identifying deprivation profiles in Spain: a new approach," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 943-955.
    6. Josep Tribo, 2005. "An analysis of the length of labour and financial contracts: a study for Spain," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 905-916.
    7. Melchor Fern·ndez & Alberto Meixide & HipÛlito J. SimÛn, "undated". "El trabajo de bajos salarios en Espana," Studies on the Spanish Economy 152, FEDEA.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:34:y:2002:i:2:p:179-195. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.