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Walsh, Frank
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Walsh, Frank
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Walsh, Frank
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Now showing 1 - 10 of 19
- PublicationLabour market rents and Irish industrial policyThis paper examines the issue of whether harmonising taxes across the traded and nontraded sectors is desirable. Preferential treatment for the traded sector might be justified if either the output response of subsidies are higher in the traded sector or if the jobs generated in the traded sector are “better” than those in the non-traded sector. I examine these two issues using a simple two sector small open economy model to analyse the first question and input-output analysis to analyse the second. I conclude that there is no compelling argument for lower taxes on the traded sector.
143 - PublicationA multisector model of efficiency wagesThe pattern of effort and wages is derived in a multisector efficiency wage model. Firms choose effort endogenously. Easily monitored or low-turnover jobs have high effort and may have low wages in equilibrium. Empirical wage differentials from a measure of supervision are smaller than observed industry differentials that have been attributed to efficiency wage models and are closer to those predicted by the model. Workers can search for and avail of on-the-job offers. If sectors grow at different rates or the unemployment rate changes, the pattern of wage differentials is unaffected.
768Scopus© Citations 31 - PublicationMinimum Wages and compliance : the case of Trinidad and TobagoExplores compliance to the national minimum wage in Trinidad and Tobago. Potential costs associated with the national minimum wage; Actual incidence of compliance in terms of employment and wage distribution; Nature of labor market.
1308Scopus© Citations 42 - PublicationMonetary shocks with variable effortIn a model with rigid nominal wages, full information and competitive product markets, I show that when an effort augmented production function is incorporated into an analysis of supply and demand shocks, the outcomes are in line with traditional Keynesian analysis for a wide range of parameter values. Monetary shocks can increase output and employment.
380 - PublicationThe Union Wage Effect and Ability Bias: Evidence from IrelandWe use longitudinal data from an Irish household survey to measure the union wage premium. A sub-sample where the worker's payslip was seen by the interviewer is unlikely to have measurement error for the union variable. The results support the finding that measurement error leads to a large downward bias in fixed effects estimates of the union effect but indicate that ability bias has a small effect on the average union wage premium.
324Scopus© Citations 4 - PublicationThe formal sector wage premium and firm sizeWe show theoretically that when larger firms pay higher wages and are more likely to be caught defaulting on labor taxes, then large-high wage firms will be in the formal and small-low wage firms will be in the informal sector. The formal sector wage premium is thus just a firm size wage differential. Using data from Ecuador we illustrate that firm size is indeed the key variable determining whether a formal sector premium exists.
557Scopus© Citations 21 - PublicationComment on 'minimum wages for Ronald McDonald monopsonies: a theory of monopsonistic competition'Bhaskar and To (1999) develop a model of monopsonistic competition and solve explicitly for equilibrium. While a minimum wage set just above the unconstrained optimum leads firms to increase employment it also causes firm exit as profits fall. In this note I show that the employment and welfare effects of the minimum wage which Bhaskar and To had thought to be ambiguous when firm exit was accounted for are in fact unambiguously positive. The model can be adjusted so that the original ambiguous employment effect results. A decomposition is developed which allows us to calculate the long run employment effect.
359Scopus© Citations 8 - PublicationWhy Do Foreign Firms Pay More: The Role of On-the-Job-TrainingWhile foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers, the causes of this remain unresolved. In a two-period bargaining framework we show that if training is more productive and specific in foreign firms, foreign firm workers will have a steeper wage profile and thus acquire a premium over time. Using a rich employer-employee matched data set we verify that the foreign wage premium is only acquired by workers over time spent in the firm and only by those that receive on the job training, thus providing empirical support for a firm specific human capital acquisition explanation.
247Scopus© Citations 36 - PublicationThe real wage gap in Ireland and its development over time : the Irish experience 1960-1987(Economic and Social Research Institute, 1989)
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