Institutional determinants of the unemployment-earnings inequality trade-off

Usually, an indirect approach for measuring deprivation or poverty is used with poverty lines. However, some studies have used a direct approach to measure deprivation or poverty. The aim of this paper is improving the identification of the poor people. The central point of the concept of deprivation we use is related to the opportunity to have or do something. Therefore, deprivation means an inability to get the goods, facilities and opportunities, which are usual in the household environment. Since all of the needed variables are categorical, we use the latent class model to solve this problem because is the best model to achieve this objective. JEL classification numbers: I31, I32

Section: Different Dimensions Of Deprivationmentioning

confidence: 99%

Section: Weighting Indicatorsmentioning

confidence: 99%

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Identifying deprivation profiles in Spain: a new approach

Mayo¹

2005

“…Lastly, the presence of intermediaries such as unions may favour short-term contracts as a way of maintaining their bargaining power within the firm (Hendricks and Kahn, 1983;Murphy, 1992) or long-term contracts (Ba´rcena and Campo, 2000). Also, Ayala et al (2002), making use of a sample of OECD countries, finds that collective bargaining co-ordination, which is more feasible in the presence of unions, reduces the unemployment rate and with that the replacement rate. This makes labour contracts more long-term in their nature.…”

Section: Introductionmentioning

confidence: 99%

An analysis of the length of labour and financial contracts: a study for Spain

Tribó¹

2005

This study investigates the connection between the duration of financial contracts and that of labour contracts. Workers with long-term contracts have incentives to invest in training. This makes them attractive to the entrepreneur. Furthermore, this behaviour will be reinforced if financial contracts are long-term, because it reduces the probability of an early liquidation as well as the dismissal of trained workers. As a conclusion, significant increases in the length of financing contracts should be accompanied by corresponding increases in the length of labour contracts. Support for this theoretical contention is found by testing it on a dataset composed of Spanish manufacturing firms for the period 1991-2000.

“…Their impact is generally analyzed via reduced-form unemployment equations with a significant exception in Nunziata (2005), who provides an empirical analysis in terms of the labor cost. 2 Another standard feature is the use of five-year averages of the time series to eliminate conjunctural variations and better focus on equilibrium or long-term relationships. This procedure, claimed to be correct on the grounds that institutions hardly vary across time, gives rise to an important concern: to take five-year averages impoverishes the available information; together with the estimation of single-equation models, it undermines the role of labour market adjustments in the presence of shocks.…”

mentioning

confidence: 99%

Institutions, capital stock and wage setting in Spain

Sala¹

2009

This paper confronts two distinct perspectives of the labour market: the institutionalist view -highlighting equilibrium and labour market institutions- and the Chain Reaction Theory -emphasising dynamics and the growth drivers' role in labour market performance-. We consider the ratio of public to private capital stock as a growth driver relevant to the labour market; provide different economic rationales for this ratio to exert a negative influence in wage setting; and explore its empirical relevance in the context of a wage setting curve for Spain comprising the standard variables. There are two main results. First, several institutional variables taken to be critical to explain unemployment in the mainstream literature are not relevant for the Spanish wage setting curve. Second, there is a negative and significant influence of the ratio of public to private capital stock, which is robust to different specifications of the wage setting equation