Identification and Estimation of a Labour Market Model for the Tradeables Sector: the Greek Case

Costas Milas and Jesus Otero

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: This paper derives a theoretical labour market model for the tradeables sector of a small open economy. Using Greek manufacturing data and applying multivariate cointegrating techniques, two cointegrating vectors are estimated based on the a priori restrictions provided by the theoretical model; a labour demand and a real exchange rate equation, respectively. The short-run estimates of the model suggest that labour decisions not only depend upon past disequilibria in the labour market, but also on the discrepancy between the real exchange rate and its implied long-run equilibrium relationship, that is, the magnitude of the real exchange rate misalignment.

Keywords: EMPLOYMENT; REGRESSION ANALYSIS; ECONOMIC MODELS; EUROPE (search for similar items in EconPapers)
JEL-codes: C32 C51 C52 E24 O52 (search for similar items in EconPapers)
Pages: 18 pages
Date: 1999
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https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2008/milasote.pdf

Related works:
Working Paper: IDENTIFICATION AND ESTIMATION OF A LABOUR MARKET MODEL FOR THE TRADEABLES SECTOR: THE GREEK CASE (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:528

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