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The effect of labour tightness on wages at the regional level in Central Europe

Author

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  • Szabó, Lajos Tamás

    (Central Bank of Hungary, Budapest, Hungary)

Abstract

"I estimate the effect of tightness on wages in Hungary and Slovakia. The Mortensen Pissarides model predicts a positive relationship but the empirical evidence is scarce. I instrument tightness by the distance of a district from the Austrian border, interacted with a dummy that marks the opening of the Austrian labour market to these countries in 2011. I find a positive effect of tightness on wages, which is in line with the conclusion of the models. If tightness increase by 1 per cent than ceteris paribus wages increase by roughly 0.2 per cent both in Hungary and Slovakia as well." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Szabó, Lajos Tamás, 2024. "The effect of labour tightness on wages at the regional level in Central Europe," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-24.
    • Handle: RePEc:iab:iabjlr:v:58:p:art.24
    DOI: 10.1186/s12651-024-00383-w
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Österreich ; Slowakei ; Ungarn ; Auswanderung ; Auswirkungen ; Einkommenseffekte ; Einwanderung ; Freizügigkeit ; Grenzgebiet ; Grenzpendler ; internationaler Vergleich ; Ost-West-Wanderung ; regionaler Arbeitsmarkt ; Arbeitskräftemangel ; Arbeitsmigration ; 2006-2019;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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