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Testing urban efficiency wages in France and Spain

José Ignacio Giménez-Nadal (), José Alberto Molina () and Jorge Velilla ()
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José Ignacio Giménez-Nadal: Universidad de Zaragoza

Authors registered in the RePEc Author Service: Jose Ignacio Gimenez-Nadal ()

Empirical Economics, 2021, vol. 61, issue 4, No 17, 2205-2236

Abstract: Abstract This paper analyzes the existence of efficiency wages in the French and Spanish labor markets, within an urban efficiency wage theoretical framework. Using data from the French and Spanish time use surveys for the year 2009–2010, results support the main hypothesis of urban efficiency wage models. In particular, that leisure and shirking at work are substitutes, that there is a negative relationship between commuting and leisure, and that there are positive relationships between commuting-shirking at work and commuting-earnings. These results represent the second test of this relationship in the literature, and the first empirical estimate of these relationships for France and Spain. The results show the existence of a direct link between commuting and earnings, which may be helpful in improving the functioning of labor markets.

Keywords: Urban efficiency wages; Shirking; Leisure; Commuting; Time use data (search for similar items in EconPapers)
JEL-codes: J22 J30 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s00181-020-01928-x

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