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Starting Wages,Hires and Separations

Author

Listed:
  • Paul Bingley

    (National Centre for Register-based Research, Tåsingegade 1,)

  • Gauthier Lanot

    (Keele University, Department of Economics)

Abstract

We study the empirical relationship between the hiring rate, separation rate and starting wages. A practical empirical model is set up and estimated on Danish matched employer-employee longitudinal data for the period 1980--1995. We find (1) firm heterogeneity is important in all dimensions of our model: starting wages, time between hires and employment length (2) matching between firms and workers is exogenous (3) friction effects in the determination of wages are very small, which suggests that the Danish labour market is close to competitive.

Suggested Citation

  • Paul Bingley & Gauthier Lanot, 2003. "Starting Wages,Hires and Separations," Keele Economics Research Papers KERP 2003/02, Centre for Economic Research, Keele University.
    • Handle: RePEc:kee:kerpuk:2003/02
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    File URL: http://www.keele.ac.uk/depts/ec/wpapers/kerp0302.pdf
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    More about this item

    Keywords

    linked longitudinal employer-employee data; unobserved heterogeneity; durations; semi-parametric mixtures;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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