The effects of incomplete employee wage information

a cross-country analysis

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The effects of incomplete employee wage infor ...
S. W. Polachek
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Last edited by MARC Bot
December 13, 2020 | History

The effects of incomplete employee wage information

a cross-country analysis

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"In this paper, we define a tractable procedure to measure worker incomplete information in the labor market. The procedure, which makes use of earnings distribution skewness, is based on econometric frontier estimation techniques, and is consistent with search theory. We apply the technique to eleven countries over various years, and find that incomplete information leads workers to receive on average about 30-35% less pay than they otherwise would have earned, had they information on what each firm paid. Generally married men and women suffer less from incomplete information than the widowed or divorced; and singles suffer the most. Women suffer more from incomplete information than men. Schooling and labor market experience reduce these losses, but institutions within a country can reduce them, as well. For example, we find that workers in countries that strongly support unemployment insurance (UI) receive wages closer to their potential, so that doubling UI decreases incomplete information and results in 5% higher wages. A more dense population reduces search costs leading to less incomplete information. A more industrial economy disseminates wage information better, so that workers exhibit less incomplete information and higher wages. Finally, we find that foreign worker inflows increase incomplete information, and at the same time reduce average wage levels, at least in the short-run"--Forschungsinstitut zur Zukunft der Arbeit web site.

Publish Date
Publisher
IZA
Language
English

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Book Details


Edition Notes

Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/9/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.

Published in
Bonn, Germany
Series
Discussion paper ;, no. 1735, Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;, no. 1735
Genre
Case studies.

Classifications

Library of Congress
HD5701

The Physical Object

Format
Electronic resource

ID Numbers

Open Library
OL3478699M
LCCN
2005618877

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December 13, 2020 Edited by MARC Bot import existing book
December 5, 2010 Edited by Open Library Bot Added subjects from MARC records.
December 10, 2009 Created by WorkBot add works page