Premium
WORKER TURNOVER AND WAGES IN EUROPE: THE INFLUENCE OF UNEMPLOYMENT AND INACTIVITY
Author(s) -
ARRANZ JOSÉ M.,
GARCÍASERRANO CARLOS,
DAVIA MARÍA A.
Publication year - 2010
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2009.02154.x
Subject(s) - endogeneity , unemployment , economics , wage , panel data , labour economics , sample (material) , demographic economics , longitudinal data , econometrics , macroeconomics , chemistry , demography , chromatography , sociology
This paper aims to estimate the impact of different labour market transitions on wages by applying recent panel data methods designed to address problems of sample selectivity, unobserved heterogeneity and endogeneity to longitudinal data on individual workers from six European countries for the period 1995–2001. In particular, we examine whether job interruptions due to unemployment or inactivity have any significant influence on subsequent wages, the magnitude of this influence and whether differences in relative wage gains/losses exist across countries. The main findings are explained in terms of differences in institutions.