Visitor Centre 9:30 am.
Alena Bicakova
(Johns Hopkins University)
Abstract
I find a sizable and significant effect of the wage on inactivity in the UK and the US but none in France. The probability of unemployment as a function of the wage decreases more rapidly in the UK and the US than it does in France. The low-skilled in France face a relatively similar risk of unemployment irrespective of their earning capacity. In the UK and the US, unemployment is concentrated among the low-skilled at the very bottom of the wage distribution. The nd a sizable and significant effect of the wage on inactivity in the UK and the US but none in France. The probability of unemployment as a function of the wage decreases more rapidly in the UK and the US than it does in France. The low-skilled in France face a relatively similar risk of unemployment irrespective of their earning capacity. In the UK and the US, unemployment is concentrated among the low-skilled at the very bottom of the wage distribution. The findings provide evidence against the commonly used argument that wage flexibility improves the employment prospects of individuals at the bottom of the wage distribution. ndings provide evidence against the commonly used argument that wage flexibility improves the employment prospects of individuals at the bottom of the wage distribution.