Did European Labor Makets Become more Competitive in the 1990's? Evidence from Estimated Worker Rents
This Paper analyses the evolution of quantitative measures of employee rents in Europe during the nineties, using the European Household Panel Survey. I look at two classes of measures: wage differentials between workers along industry and firm size dimensions; and estimated welfare differences between employed and unemployed using a model of labour market transitions. The results are largely negative; there is robust evidence of falling rents during that period only in Ireland.
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