Wages and Recruitment
Evidence from External Wage Changes
Bibliographic Data
| ID | 3301247 |
|---|---|
| Authors | Torberg Falch (0000-0002-8850-6908, Torberg Falch is a Professor at the Norwegian University of Science and Technology., corresponding author) |
| Year | 2017 |
| Volume | 70 |
| Issue | 2 |
| Pages | 483-518 |
| Publication date | 2017-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Industrial and Labor Relations Review (JOURNAL) |
| Journal identifiers | ISSN: 0019-7939 • E-ISSN: 2162-271X |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/0019793916651040 |
| OpenAlex | W3121279250 |
| Language | EN |
| Citations received | 3 |
| References cited | 21 |
In this article, the author estimates the causal effect of the wage level on the recruitment rate in establishments. During the 1990s, the wage setting for certified teachers in Norway was completely centralized, with a state-paid wage premium of about 10% at some schools with severe recruitment problems. The empirical approach exploits within-school variation in wage-premium eligibility and that actual teacher supply is empirically observed at schools with excess demand for teachers. In a difference-in-differences framework, the wage premium increases the recruitment rate by 6 to 7 percentage points. This finding is robust to model specification and indicates that the recruitment elasticity to the wage is equal to the separation elasticity in absolute terms. The implied short-run labor-supply elasticity for individual establishments is about 1.4. It is also evidence of a diminishing return to scale in recruitment activity, a central assumption in search-theoretic models of imperfect competition in the labor market
Competition (biology) · Econometrics · Economics · Efficiency wage · Elasticity (physics) · Exploit · Imperfect · Imperfect competition · Labour economics · Microeconomics · Monopsony · Price elasticity of demand · Supply and demand · Wage · Economic Policies and Impacts · Labor market dynamics and wage inequality · School Choice and Performance
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| Unique citing works | 3 |
|---|---|
| Citations per year | 0,38 |
| Citation span | 2018 - 2021 (4) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |