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Convergence in an Open Labour Market

  • John Curtis
  • John FitzGerald

    (Economic and Social Research Institute (ESRI))

This paper looks at how the Irish experience of integration has affected the labour market, bringing about convergence in labour costs between Ireland and the UK. A model of this process is developed and estimated which takes account of the fact that productive capacity and output are mobile within the EC economy and that integration affects the supply of labour through the potential for migration and changing expectations. The results indicate that changes In tax in the UK can affect the Irish labour market.

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File URL: http://www.esri.ie/UserFiles/publications/20071024100057/WP045.pdf
File Function: First version, 1994
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Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP045.

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Length: 16 pages
Date of creation: Feb 1994
Date of revision:
Handle: RePEc:esr:wpaper:wp045
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  1. Kanbur, Ravi & Keen, Michael, 1993. "Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size," American Economic Review, American Economic Association, vol. 83(4), pages 877-92, September.
  2. Bradley, John & Fitzgerald, John, 1988. "Industrial output and factor input determination in an econometric model of a small open economy," European Economic Review, Elsevier, vol. 32(6), pages 1227-1241, July.
  3. Honohan, Patrick, 1992. "The Link between Irish and UK Unemployment," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 1992(1-Spring).
  4. O'Rourke, K., 1990. "International Migration and Wage rates in Twentieth Century Ireland," Papers fb-_90-18, Columbia - Graduate School of Business.
  5. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, March.
  6. Steven J. Davis, 1992. "Cross-Country Patterns of Change in Relative Wages," NBER Working Papers 4085, National Bureau of Economic Research, Inc.
  7. Pain, Nigel, 1993. "An Econometric Analysis of Foreign Direct Investment in the United Kingdom," Scottish Journal of Political Economy, Scottish Economic Society, vol. 40(1), pages 1-23, February.
  8. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
  9. Callan, Tim & FitzGerald, John, 1989. "Price Determination in Ireland: Effects of Changes in Exchange Rates and Exchange Rate Regimes," Papers ME179, Economic and Social Research Institute (ESRI).
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