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Job competition and entry wages of highly educated workers: are there differences between Great Britain and Finland?

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  • Hynninen, Sanna-Mari
  • Longhi, Simonetta

Abstract

This paper analyses the impact that local labour market conditions have on entry wages of highly educated workers in Great Britain and Finland. In both countries, workers entering the labour market in regions with (or periods of) tighter job competition obtain lower wages. Competition from employed job seekers has a negative impact on entry wages in both countries, while competition from unemployed job seekers has a negative impact only in Finland. Overall, the wage elasticity is larger in Great Britain than in Finland, suggesting that centralised collective bargaining might mitigate the impact that local labour market conditions have on entry wages.

Suggested Citation

  • Hynninen, Sanna-Mari & Longhi, Simonetta, 2009. "Job competition and entry wages of highly educated workers: are there differences between Great Britain and Finland?," ISER Working Paper Series 2009-20, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2009-20
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    File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2009-20.pdf
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