Abstract
A firm that faces insufficient supply of labor can either increase the wage offer to attract more applicants, or reduce the hiring standard to enlarge the pool of potential employees, or do both. This simultaneous adjustment of wages and hiring standards has been emphasized in a classical contribution by Reder (1955) and implies that wage reactions to employment changes can be expected to be more pronounced for low wage workers than for high wage workers. We test this hypothesis (together with a related hypothesis on firm-specific human capital) by applying a bootstrap-based quantile regression approach to censored panel data from the German employment register. Our findings suggest that market clearing is achieved by a combination of wage and hiring standards adjustment.
| Dokumententyp: | Paper |
|---|---|
| Keywords: | wage setting, hiring standards, wage structure, efficiency wages, panel quantile regression, censoring |
| Fakultät: | Volkswirtschaft
Volkswirtschaft > Munich Discussion Papers in Economics Volkswirtschaft > Munich Discussion Papers in Economics > Arbeit Volkswirtschaft > Munich Discussion Papers in Economics > Statistische Methoden |
| Themengebiete: | 300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie
300 Sozialwissenschaften > 330 Wirtschaft |
| JEL Classification: | J31, J41, C24 |
| URN: | urn:nbn:de:bvb:19-epub-1977-7 |
| Sprache: | Englisch |
| Dokumenten ID: | 1977 |
| Datum der Veröffentlichung auf Open Access LMU: | 06. Jul. 2007 |
| Letzte Änderungen: | 05. Nov. 2020 08:42 |
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