Labour-market institutions, (un)employment, wages, and growth: theory and data

• Type: Article in International Scientific Journal
• Date: 2018

Authors

Óscar Afonso (Author) FEP; Bandeira, AM (Author) Other; Magalhaes, M (Author) Other

Journal

Title: Applied Economics

Vol. 50

Pages: 613-633

ISSN: 0003-6846

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 4 Citations

Other information

Authenticus ID: P-00N-RGJ

DOI: 10.1080/00036846.2017.1332748

Abstract (EN): We analyse the implications of labour-market institutions on wage inequality in favour of skilled labour, on relative unemployment of unskilled labour, and on the economic growth rate in two clusters resulting from 27 OECD countries: Cluster 1, closely related with the Anglo-Saxon model, and Cluster 2, dominated by the Continental-European model. By linking the unskilled wage to the skilled one in Cluster 2, due to the indexation of social benefits to per-capita income, we accommodate the observed paths of the three variables in both clusters between 1991 and 2008: Cluster 1 presents a higher wage inequality in favour of skilled labour, a lower unemployment of the unskilled labour, and a better economic growth rate.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 21