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