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Testing urban efficiency wages in France and Spain

Author

Listed:
  • José Ignacio Giménez-Nadal

    (Universidad de Zaragoza
    BIFI)

  • José Alberto Molina

    (Universidad de Zaragoza
    BIFI
    IZA)

  • Jorge Velilla

    (Universidad de Zaragoza)

Abstract

This paper analyzes the existence of efficiency wages in the French and Spanish labor markets, within an urban efficiency wage theoretical framework. Using data from the French and Spanish time use surveys for the year 2009–2010, results support the main hypothesis of urban efficiency wage models. In particular, that leisure and shirking at work are substitutes, that there is a negative relationship between commuting and leisure, and that there are positive relationships between commuting-shirking at work and commuting-earnings. These results represent the second test of this relationship in the literature, and the first empirical estimate of these relationships for France and Spain. The results show the existence of a direct link between commuting and earnings, which may be helpful in improving the functioning of labor markets.

Suggested Citation

  • José Ignacio Giménez-Nadal & José Alberto Molina & Jorge Velilla, 2021. "Testing urban efficiency wages in France and Spain," Empirical Economics, Springer, vol. 61(4), pages 2205-2236, October.
    • Handle: RePEc:spr:empeco:v:61:y:2021:i:4:d:10.1007_s00181-020-01928-x
    DOI: 10.1007/s00181-020-01928-x
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    References listed on IDEAS

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    Cited by:

    1. Jiajia Wei & Qiyan Wang & Wang Gao, 2022. "How Commuting Time Affects Employees’ Income in China’s Urbanization Process," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    2. Echeverría, Lucía & Gimenez-Nadal, J. Ignacio & Molina, José Alberto, 2023. "Commuting in dual-earner households: International gender differences with time use surveys," Nülan. Deposited Documents 3932, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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    More about this item

    Keywords

    Urban efficiency wages; Shirking; Leisure; Commuting; Time use data;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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