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The Dynamics of Wages and Employment

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  • Leonard, Jonathan S.
  • Van Audenrode, Marc

Abstract

In this paper, we demonstrate substantial heterogeneity in wage growth across firms within industry, and across workers within firm in Belgium. This variation does not appear to be consistent with simple measurement error stories, but rather seems to be evidence of a more complex labor market. We also empirically show how different the wage and employment adjustment process looks at different levels of aggregation. Dans ce travail, nous montrons le haut niveau d'hétérogénéité dans la croissance des salaires entre firmes d'une même industrie et entre travailleurs d'une même firme. Ces différences ne semblent pas être causées par de l'erreur de mesure, mais semblent plutôt indicatrice de l'existence d'un marché du travail complexe. Nous montrons également les différences entre les processus d'ajustement de l'emploi et des salaires à différents niveau d'agrégation.

Suggested Citation

  • Leonard, Jonathan S. & Van Audenrode, Marc, 1998. "The Dynamics of Wages and Employment," Cahiers de recherche 9806, Université Laval - Département d'économique.
    • Handle: RePEc:lvl:laeccr:9806
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    File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/1998/9806.pdf
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    References listed on IDEAS

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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