Employment protection, job-tenure and short term mobility wage gains - A new explanation for the Italian case
This paper investigates theoretical and empirical links between job tenure and short-term mobility wage gains. Standard theoretical approaches examining this subject predict a negative correlation between these variables. Furthermore, this result has been confirmed in different applied researches for US. However, European labour market institutions appear to be quite di??erent from US ones, especially for employment protection and turnover costs. Taking this feature into account we develop a theoretical model, evaluated through analytical and simulation procedures, where optimal switching conditions determine a positive correlation between job-tenure and short-term mobility wage gains. Our main proposition is confirmed for the Italian case using an administrative panel database (INPS) and different econometric specifications.
|Date of creation:||2004|
|Date of revision:||2004|
|Contact details of provider:|| Web page: http://dipartimento.dse.uniroma1.it/economia/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:des:wpaper:10. 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: (Claudio Sardoni)
If references are entirely missing, you can add them using this form.