Now showing 1 - 10 of 36
  • Publication
    Minimum wages for Ronald McDonald monopsonies : a theory of monopsonistic competition by V Bhaskar and Ted To - a comment
    (University College Dublin. School of Economics, 2001-09)
    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.
      179
  • Publication
    Labour market regulation and migration in Ireland
    (The Economic and Social Research Institute, 2013)
    We demonstrate that a disproportionately large fraction of migrants in Ireland enter sectors with regulated wages and working conditions. There is a substantial wage penalty associated with being a migrant that varies across migrant groups but disappears within regulated sectors. 
      178
  • Publication
    Productivity, Non-Compliance and the Minimum Wage
    (University College Dublin. School of Economics, 2021-11) ;
    Many informal firms in developing countries would not be viable if they were to comply with the minimum wage law. This means the authorities have an incentive to turn a blind eye to non-enforcement in a substantial share of firms. We also survey enforcement mechanisms for the minimum wage across developing countries and find that worker complaints are an important element in determining whether firms will be inspected for non-compliance or not. We develop a theoretical monopsony model which rationalises the stylised facts we observe. For a given minimum wage, the government can choose a level of enforcement and penalties for non-compliance such that employment will not fall for any optimising firm, irrespective of their productivity. Low productivity firm’s optimal choice of employment and wage will be unaffected by the introduction of the minimum wage. High productivity firms comply so that wage and employment effects are non-negative for these firms.
      117
  • Publication
    Multinational companies, backward linkages and labour demand elasticities
    (University College Dublin; School of Economics, 2006-12) ; ; ;
    This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local economy. Our empirical evidence, based on a rich plant level dataset, shows that the extent of local linkages indeed reduces the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.
      286
  • Publication
    The formal sector wage premium and firm size for self-employed workers
    (University College Dublin. School of Economics, 2012-03) ; ; ; ;
    We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in self-employment only when they cannot find a salaried job. For these workers self-employment is a secondary/informal form of employment. The Burdett and Mortensen (1998) equilibrium search model is used for illustration as a special case of our more general framework. Empirical evidence from Mexico is provided and demonstrates that firm size wage effects for employees and self-employed workers are broadly consistent with the model.
      121
  • Publication
    The minimum wage and hours per worker
    (University College Dublin. School of Economics, 2010-10) ;
    In a competitive model we ease the assumption that efficiency units of labour are the product of hours and workers. We show that a minimum wage may either increase or decrease hours per worker and the change will have the opposite sign to the slope of the equilibrium hours hourly wage locus. Similarly, total hours worked may rise or fall. We illustrate the results throughout with a Cobb-Douglas example.
      114
  • Publication
    Labour Market Measures in Ireland 2008-13: The Crisis and Beyond
    (International Labour Organization, 2016-02-09)
    The period leading up to 2008 was one of rapid growth in the Irish economy. After a long period of low growth, high unemployment and the accumulation of large public debts throughout the late seventies up to the mid-eighties, there was a sustained period of high growth from the late eighties until 2007, with average growth rates of over 6 per cent in this period. This is often referred to as the period of the 'Celtic Tiger'. Honohan and Walsh (2002) provide a good discussion of some of the main factors thought to be the causes of this boom and suggest that it can be seen as a period of catch-up as the Irish economy recovered from low growth rates associated with poor policy decisions and benefited from a set of other favourable factors. Some of these factors are: access to the single European market, an improvement in the industrial relations climate, favourable conditions for attracting inward foreign direct investment and an improved fiscal position. While Honohan and Walsh (2002) expected a slowdown in growth in the new millennium as the Irish economy converged towards full employment and levels of output per head close to those of its European neighbours, the period from 2000 to 2007 was one of continued economic growth. The nature of growth in this period meant that the Irish economy was particularly exposed to the 2008 financial crisis.
      919
  • Publication
    Labour market rents and Irish industrial policy
    (Economic and Social Research Institute, 1999)
    This 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.
      91
  • Publication
    The Formal Sector Wage Premium and Firm Size for Self-employed Workers
    (University College Dublin. School of Economics, 2013-10) ; ; ; ;
    We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in self-employment only when they cannot find a salaried job. For these workers self-employment is a secondary/informal form of employment. The Burdett and Mortensen (1998) equilibrium search model is used for illustration as a special case of our more general framework. Empirical evidence from Mexico is provided and demonstrates that firm size wage effects for employees and selfemployed workers are broadly consistent with the model.
      134
  • Publication
    The ambiguous effect of minimum wages on hours
    (Elsevier, 2011-04) ;
    In a competitive model we ease the assumption that efficiency units of labour are the product of hours and workers. We show that a minimum wage may either increase or decrease hours per worker and the change will have the opposite sign to the slope of the equilibrium hours hourly wage locus. Similarly, total hours worked may rise or fall. We illustrate the results throughout with a Cobb-Douglas example.
      346Scopus© Citations 8