Working Paper: CEPR ID: DP4327
Authors: Gilles Saint-Paul
Abstract: 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.
Keywords: insiders; labour market; flexibility; rents; unemployment
JEL Codes: D30; E24; J30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| labor market reforms (e.g., liberalization of temporary contracts) (J48) | changes in worker rents (J69) |
| product market competition (L13) | labor market conditions (J29) |
| wage differentials across industries and firm sizes (J31) | labor market competition (J29) |
| employment transitions (J63) | worker welfare and rents (J38) |
| labor market structures (J42) | levels of rents (R21) |
| reforms aimed at increasing labor market flexibility (J48) | evolution of rents (R21) |
| increased competition (L13) | reduction in rents (R21) |
| increased rents (R21) | greater support for employment protection legislation (J68) |
| greater support for employment protection legislation (J68) | increased rents (R21) |