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Convergence in an Open Labour Market

Author

Listed:
  • John Curtis
  • John FitzGerald

    (Economic and Social Research Institute (ESRI))

Abstract

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.

Suggested Citation

  • John Curtis & John FitzGerald, 1994. "Convergence in an Open Labour Market," Papers WP045, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:wp045
    as

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    File URL: http://www.esri.ie/pubs/WP045.pdf
    File Function: First version, 1994
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    References listed on IDEAS

    as
    1. 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).
    2. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    3. Steven J. Davis, 1992. "Cross-Country Patterns of Change in Relative Wages," NBER Chapters,in: NBER Macroeconomics Annual 1992, Volume 7, pages 239-300 National Bureau of Economic Research, Inc.
    4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    5. Williamson, Jeffrey G., 1987. "Debating the British industrial revolution," Explorations in Economic History, Elsevier, vol. 24(3), pages 269-292, July.
    6. 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.
    7. 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).
    8. Kanbur, Ravi & Keen, Michael, 1993. "Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size," American Economic Review, American Economic Association, pages 877-892.
    9. O'Rourke, K., 1990. "International Migration and Wage rates in Twentieth Century Ireland," Papers fb-_90-18, Columbia - Graduate School of Business.
    10. 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.
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