Labor Market Institutions and the Employment-Productivity Trade-Off : A Wage Posting Approach

Arbeitspapier

This paper analyzes the implications of labor market institutions and policies on the employment-labor productivity trade-off. We consider an equilibrium search model with wage posting and specific human capital investment where unemployment and the distribution of both wages and productivity are endogenous. By means of simulations of this model estimated on French data, we show that the minimum wage allows a high production level to be reached by inducing increased training investment, even if its optimal level is weaker. Considering the payroll tax subsidies implemented to lower the labor cost without removing the minimum wage legislation, we show that this policy has been welfare improving, and has been relatively well managed by spreading subsidies over a large range of wages, and not only at the minimum wage level.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 1364

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Model Construction and Estimation ; Wages, Compensation, and Labor Costs: Public Policy ; Wage Level and Structure; Wage Differentials ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Thema: employment ; productivity ; wage posting ; labor costs ; Arbeitsmarktflexibilisierung ; Beschäftigung ; Produktivität ; Arbeitsuche ; Lohnbildung ; Bildungsinvestition ; Mindestlohn ; Arbeitsproduktivität ; Schätzung ; Frankreich

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Chéron, Arnaud ; Hairault, Jean-Olivier ; Langot, François
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/20661
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ