An explorative analysis of the influence of labour flows on wage formation

L. Broersma; F.A.G. den Butter

doi:10.1080/00036840110116405

An explorative analysis of the influence of labour flows on wage formation

L. Broersma, F.A.G. den Butter

Economics

Research output: Contribution to Journal › Article › Academic

Abstract

This study presents an explorative econometric analysis of the influence of labour market flows on wage formation. It applies the vector cointegration and common trends methodology of Johansen (Likelihood-based Inference in Cointegrated Vector Autoregressive Models, OUP, Oxford, 1995). According to this approach, a combination of the flow of layoffs (flow from employment to unemployment) and the flow of filled vacancies (successful matches) appears to be an adequate alternative to the unemployment rate as indicator of labour market tightness in the wage equation for The Netherlands.

Original language	English
Pages (from-to)	1583-1592
Number of pages	10
Journal	Applied Economics
Issue number	34
DOIs	https://doi.org/10.1080/00036840110116405
Publication status	Published - 2002

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AB - This study presents an explorative econometric analysis of the influence of labour market flows on wage formation. It applies the vector cointegration and common trends methodology of Johansen (Likelihood-based Inference in Cointegrated Vector Autoregressive Models, OUP, Oxford, 1995). According to this approach, a combination of the flow of layoffs (flow from employment to unemployment) and the flow of filled vacancies (successful matches) appears to be an adequate alternative to the unemployment rate as indicator of labour market tightness in the wage equation for The Netherlands.

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An explorative analysis of the influence of labour flows on wage formation

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