DP4327 Did European Labour Markets Become More Competitive in the 1990's? Evidence from Estimated Worker Rents

Author(s): Gilles Saint-Paul
Publication Date: March 2004
Keyword(s): insiders, labour market flexibility, rents, unemployment
JEL(s): D30, E24, J30
Programme Areas: International Macroeconomics, Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=4327

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.