Labor market institutions and the employment-productivity trade-off
Subtitle: a wage posting approach
By: by Arnaud Chéron, Jean-Olivier Hairault, Francois Langot.
Contributors: Hairault, Jean-Olivier.; Langot, François.
Series: Discussion paper ;; no. 1364; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1364
Publisher: IZA
Published: 2004
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Labor market -- France.; Minimum wage -- France.; Labor productivity -- France.
Description: "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"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 4/15/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.