DOAJ Open Access 2024

The effect of labour tightness on wages at the regional level in Central Europe

Lajos Tamás Szabó

Abstrak

Abstract I estimate the effect of tightness on wages in Hungary and Slovakia. The Mortensen Pissarides model predicts a positive relationship but the empirical evidence is scarce. I instrument tightness by the distance of a district from the Austrian border, interacted with a dummy that marks the opening of the Austrian labour market to these countries in 2011. I find a positive effect of tightness on wages, which is in line with the conclusion of the models. If tightness increase by 1 per cent than ceteris paribus wages increase by roughly 0.2 per cent both in Hungary and Slovakia as well.

Topik & Kata Kunci

Labor market. Labor supply. Labor demand

Penulis (1)

Lajos Tamás Szabó

Format Sitasi

APA MLA BibTeX

Szabó, L.T. (2024). The effect of labour tightness on wages at the regional level in Central Europe. https://doi.org/10.1186/s12651-024-00383-w

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Informasi Jurnal

Tahun Terbit: 2024
Sumber Database: DOAJ
DOI: 10.1186/s12651-024-00383-w
Akses: Open Access ✓