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Structural Aspects of the Labour Markets of Five OECD Countries

In: Market Behaviour and Macroeconomic Modelling


  • Geert Ridder
  • Niels Visser
  • Gerard Berg


In the past decades, labour economists have accumulated evidence that is at odds with the hypothesis that the labour market is a standard competitive market. Wage regressions show that employer size, that is the number of employees of the firm or establishment, has a positive effect on the wage (Brown and Medoff, 1989), and that there are persistent differences between the wages in different industries (Krueger and Summers, 1988). These effects remain, if an extensive list of controls for productive differences between workers is included in the regression. Moreover, these results have been replicated for many countries.

Suggested Citation

  • Geert Ridder & Niels Visser & Gerard Berg, 1998. "Structural Aspects of the Labour Markets of Five OECD Countries," Palgrave Macmillan Books, in: Steven Brakman & Hans Ees & Simon K. Kuipers (ed.), Market Behaviour and Macroeconomic Modelling, chapter 8, pages 201-218, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-26732-3_8
    DOI: 10.1007/978-1-349-26732-3_8

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