The aim of this paper is to evaluate the impact of a wage increase on Qat consumption for the Djiboutian mail household head using a static framework. In particular, by using a system of simultaneous of equations with Qat consumption and Wage as endogenous variables, the paper estimates whether a wage increase will affect Qat consumption. Our findings suggest that the impact of wage on Qat cons...

This paper replicates studies by Medoff and Abraham (1980, 1981) and Flabbi and Ichino (2001) using personnel data from the Dutch national aircraft manufacturer Fokker. It shows how a formal salary system, as is widely used by large firms, brings about that seniority-wage profiles are largely independent of controls for reported performance in crosssectional wage regressions even though supervi...

This paper aims at answering the question: How does a typically European bargaining system |with collective bargaining, extension mechanisms and national minimum wage |coexist with low unemployment rate and high wage °exibility? A unique data set on workers, ̄rms and collective bargaining contracts in the Portuguese economy is used to analyze the determinants of both the bargained wage and the ...

In this study we investigate the minimum wage (MW) effects for a German sub-construction sector where the MW bites extraordinary hard by international standards. Within a quasiexperiment we estimate the Quantile Treatment Effects of the MW on the conditional and unconditional distribution of earnings. For Eastern Germany, the results indicate significant real (nominal) wage increases that rippl...

the minimum wage determination is one of the most significant economic issues exerting effects on macroeconomic variables. this study provides an empirical model using var method to analyze the long run relationships and short run dynamisms of factors affect general price level (with emphasis on minimum wage) during the period of 1978-2010. to examine long run relationships we used johansen-jus...

the main purpose of this paper is to investigate the impact of trade openness on the employment and the real wage for the iranian food and beverage industries over the year 2007. for this purpose in this study, the ratio of export to production value has been considered as a proxy for trade openness and the main model has been estimated using a dynamic panel data (dpd) approach. the main findin...

European collective bargaining systems have the reputation of imposing rigidity on the labor market, which leads to high unemployment, in particular when compared to the USA system. Portugal is one of the OECD economies with highest wage °exibility and lowest unemployment rate, despite having typically European labor market institutions |collective bargaining sets wages for unionized as well as...