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Title: 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 and unemployment

Programme Area(s): International Macroeconomics and Labour Economics

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.

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Bibliographic Reference

Saint-Paul, G. 2004. 'Did European Labour Markets Become More Competitive in the 1990's? Evidence from Estimated Worker Rents'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4327