This paper characterises optimal monetary policy in an economy with endogenous …rm entry, a cash-in-advance constraint and preset wages. Firms must make pro…ts to cover entry costs; thus the markup on goods prices is e¢cient. However, because leisure is not priced at a markup, the consumption-leisure tradeo¤ is distorted. Consequently, the real wage, hours and production are suboptimally low. D...

Legal protection has a meaning as by using legal means or provided law, aimed at the of certain interests, namely making interests that need to be protected into right. wages contract workers according Law No. 13 2003 concerning Manpower and Islamic well similarities differences. The results this study indicate between law is show not guaranteed welfare includes six things, namely: / laborers w...

Structural Estimates of the Intergenerational Education Correlation Using a structural dynamic programming model, we investigate the relative importance of family background variables and individual specific abilities in explaining cross-sectional differences in schooling attainments and wages. Given scholastic ability, household background variables (especially parents' education) account for ...

Ever since H. G. Lewis’s classic (1963) study of union relative wages, the empirical study of the economic effects of trade unions has been a thriving industry in the U.S. Since that time, the empirical analysis of unions’ effects has spread to encompass outcomes other than wages --including profits, productivity and employment—and to consider unionism in other countries, including the U.K. and...

This paper investigates whether employer sanctions for hiring undocumented workers introduced by the 1986 Immigration Reform and Control Act (IRCA) adversely affected the hourly earnings of Latino workers in the southwestern United States. We exploit the staggering of the sanctions and employee verification requirements across sectors to estimate this effect. In particular, IRCA’s employer-sanc...

This paper considers the wage-setting behaviour of a monopoly union facing foreign competition. Contrary to intuition, trade integration is predicted to make union wages less sensitive to foreign wage changes if union preferences are sufficiently biased towards wages relative to employment. This is confirmed empirically using sector-level time-series on EU member states, using the existence of ...

The growth rates of wages, unemployment and output of a number of OECD countries have a strongly skewed distribution. In this paper we analyze to what extent downward wage rigidities can explain these empirical business cycle asymmetries. To this aim, we introduce asymmetric wage adjustment costs in a New-Keynesian DSGE model with search and matching frictions in the labor market. Increasing wa...

Real wage rates in Ghana have fallen substantially over the last twenty years. In this paper survey data for the years 1991–1996 is used to assess whether this fall has continued in the 1990s. It is shown that the fall in average real wage rates has continued, the relative wage of skilled labour has risen, the share of skilled wages in total wages has remained constant and the share of wages in...

The U.S. Bureau of Labor Statistics’ Quarterly Census of Employment and Wages (QCEW) program currently uses each establishment’s year-ago trend in imputing missing employment and wages data. Ratio method is introduced which is using current trend of employment and wages. An empirical evaluation of well established methods, namely ratio and nearest–neighbor, is undertaken. This paper presents th...