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: | 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.