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Institutional determinants of the unemployment-earnings inequality trade-off

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  • Luis Ayala
  • Rosa Martinez
  • Jesus Ruiz-Huerta

Abstract

Most of the research efforts in recent years to explain international differences in unemployment and earnings inequality have placed the emphasis on the institutional components of the labour markets. The purpose of this paper is to evaluate which are the real effects of these characteristics on both phenomena using an ample set of data for different OECD countries. A Cluster analysis permits consideration about relatively heterogeneous models. The results of the econometric exercise show also that institutional factors have a greater impact on earnings inequality than on unemployment.

Suggested Citation

  • Luis Ayala & Rosa Martinez & Jesus Ruiz-Huerta, 2002. "Institutional determinants of the unemployment-earnings inequality trade-off," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 179-195.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:179-195
    DOI: 10.1080/00036840010031464
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    References listed on IDEAS

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    Cited by:

    1. Ayala, Luis & Sastre, Mercedes, 2002. "What determines income mobility differences across the European Union?," ISER Working Paper Series 2002-27, Institute for Social and Economic Research.
    2. Andrés Rodríguez‐Pose & Vassilis Tselios, 2009. "Education And Income Inequality In The Regions Of The European Union," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 411-437, August.
    3. Jesus Perez-Mayo, 2005. "Identifying deprivation profiles in Spain: a new approach," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 943-955.
    4. Josep Tribo, 2005. "An analysis of the length of labour and financial contracts: a study for Spain," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 905-916.
    5. Hector Sala, 2009. "Institutions, capital stock and wage setting in Spain," Applied Economics, Taylor & Francis Journals, vol. 41(6), pages 779-789.
    6. Tregenna, F., 2009. "The Relationship Between Unemployment and Earnings Inequality in South Africa," Cambridge Working Papers in Economics 0907, Faculty of Economics, University of Cambridge.
    7. Marco Lilla & Stefano Staffolani, 2009. "The evolution of wage inequality in Italy," Applied Economics, Taylor & Francis Journals, vol. 41(15), pages 1873-1892.
    8. Joël Hellier & Nathalie Chusseau, 2010. "Globalization and the Inequality–Unemployment Tradeoff," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 1028-1043, November.
    9. Melchor Fernández & Alberto Meixide & Hipólito J. Simón, "undated". "El trabajo de bajos salarios en Espana," Studies on the Spanish Economy 152, FEDEA.

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