Using longitudinal data from the Swiss Household Panel, this analysis suggests that the cross-sectional estimates of the returns to educational mismatch are significantly biased when unobserved heterogeneity is omitted in the wage equation. The results of the standard fixed effects model indeed...

This paper proposes an improved concept of educational mismatch that combines a statistical measure of over- and undereducation with the worker’s self-assessment of skill utilization. In that way, we account for worker heterogeneity in skills whose omission may generate biased estimates of the...

When do exports lead to rents ? And when are they shared with employees ? This paper proposes a double empirical test that deals with this question, based on a mix of rent sharing theories and Cournot Oligopoly. We find that most of the OECD exporting activities are associated with some rent...

Using two periods’ panel data from the Swiss Graduate Survey, this study examines the incidence and wage effects of overeducation. Contrary to most prior research, we account for graduate heterogeneity in perceived skills mismatch when measuring overeducation and correct for potential omitted...

In this paper we explore a matched employer-employee data set to investigate the presence of gender wage discrimination in the Belgian private economy labour market. We identify and measure gender wage discrimination from firm-level data using a labour index decomposition pioneered by...

The paper uses the recent union-firm bargaining literature for a theoretical appraisal of the positive relationship found in some empirical studies between union wages and the constituents of firm’s monopolistic rents. The paper assesses that this relationship depends on many factors, such as...

We build a multi-sector model with wage bargaining and imperfect competition to analyse the links between wage interdependence and competitiveness. Quantity constraints together with union power, firm market power and wage externalities play a significant role in the determination of...

This article argues in favor of drawing a distinction between the concepts of labour rationing and unemployment, the former referring to the occurrence of excess supply in a given labour market, the latter to job-waiting activity. In a first part, the literature on the possible consequences of...

This paper applies a production function approach to the analysis of imperfections in output and factor markets and develops a test of efficient bargaining for wage and employment determination. Based on a translog function defined at the firm level, estimates for the Belgian chemical industry...

The paper analyses the consequence of introducing (decentralized) union-firm bargaining in the theory of the firm under uncertainty. Contrary to earlier beliefs that short-run output does not change with additive uncertainty, it is shown that risk preference may matter when union-firm bargaining...