Being the largest transition economy Russia has interested economists since the collapse of the USSR. This thesis contributes to the literature on Russian labour market. In the first chapter I investigate cyclicality of real wages in Russia, the second chapter looks into consequences of wage arrears for workers' future and the third chapter develops a model of wage arrears that arise as a result of firms' opportunistic behaviour. The principal source of data used in this thesis is the Russia Longitudinal Monitoring Survey (the RLMS). The first chapter investigates cyclicality of real wages in Russia. The analysis is carried out both at the country as well as regional levels and the influence of wage arrears on the cyclicality is examined. The estimated cyclicality coefficient is three to four times larger in magnitude than those observed for Germany, the UK, the USA and other developed countries. An increase in unemployment rate by one percentage point leads to an average reduction in real wages of four percent. The results are robust to changes in sample period and estimation technique. Wage arrears do not prove to be the driving force of this strong procyclicality. The second chapter investigates influence of wage arrears on the future of affected workers. Limited dependent variable models are used to analyse the effects of wage arrears on the probability of future wage arrears and frequent separation from employers. Difference-in-difference approach is used to analyse effects on earnings. The results suggest that affected workers are twice as likely to experience wage arrears again within next three years. Job-movers are able to decrease the probability of repeated wage arrears by nine percentage points. The effect on separations is more modest: affected workers are approximately forty percent more likely to change jobs the following year and eleven percent more likely to experience frequent separations within five years after wage arrears. The effect on future earnings is relatively small and short-lived. Take-home wages decrease by 1 000 RUB compared to unaffected workers and recover within the following year. Analysis of stocks and flows of wage arrears indicates that in the period from 1998 to 2012 on average three quarters of wage debts were repaid. The third chapter picks up the discussion of the nature of wage arrears in Russia. An indirect evidence suggests that sometimes the firms choose to withhold wages despite having the resources to pay and in certain circumstances the employees accept it. The chapter presents a model of wage arrears that is based on worker-firm interactions. Calibration to the Russian data indicates that the parameter values observed in the RLMS dataset are consistent with a stable equilibrium in which an approximately half of the labour force experience late payments. The model predicts average duration of wage arrears of four months. This prediction is consistent with the Russian reality in the late 1990s.

<p>Study I<i>Real Wage Determination in the Swedish Engineering Industry</i></p><p>This study uses the monopoly union model to examine the determination of real wages and in particular the effects of active labour market programmes (ALMPs) on real wages in the engineering industry. Quarterly data for the period 1970:1 to 1996:4 are used in a cointegration framework, utilising the Johansen's maximum likelihood procedure. On a basis of the Johansen (trace) test results, vector error correction (VEC) models are created in order to model the determination of real wages in the engineering industry. The estimation results support the presence of a long-run wage-raising effect to rises in the labour productivity, in the tax wedge, in the alternative real consumer wage and in real UI benefits. The estimation results also support the presence of a long-run wage-raising effect due to positive changes in the participation rates regarding ALMPs, relief jobs and labour market training. This could be interpreted as meaning that the possibility of being a participant in an ALMP increases the utility for workers of not being employed in the industry, which in turn could increase real wages in the industry in the long run. Finally, the estimation results show evidence of a long-run wage-reducing effect due to positive changes in the unemployment rate.</p><p>Study II<i>Intersectoral Wage Linkages in Sweden</i></p><p>The purpose of this study is to investigate whether the wage-setting in certain sectors of the Swedish economy affects the wage-setting in other sectors. The theoretical background is the Scandinavian model of inflation, which states that the wage-setting in the sectors exposed to international competition affects the wage-setting in the sheltered sectors of the economy. The Johansen maximum likelihood cointegration approach is applied to quarterly data on Swedish sector wages for the period 1980:1–2002:2. Different vector error correction (VEC) models are created, based on assumptions as to which sectors are exposed to international competition and which are not. The adaptability of wages between sectors is then tested by imposing restrictions on the estimated VEC models. Finally, Granger causality tests are performed in the different restricted/unrestricted VEC models to test for sector wage leadership. The empirical results indicate considerable adaptability in wages as between manufacturing, construction, the wholesale and retail trade, the central government sector and the municipalities and county councils sector. This is consistent with the assumptions of the Scandinavian model. Further, the empirical results indicate a low level of adaptability in wages as between the financial sector and manufacturing, and between the financial sector and the two public sectors. The Granger causality tests provide strong evidence for the presence of intersectoral wage causality, but no evidence of a wage-leading role in line with the assumptions of the Scandinavian model for any of the sectors. </p><p>Study III<i>Wage and Price Determination in the Private Sector in Sweden</i></p><p>The purpose of this study is to analyse wage and price determination in the private sector in Sweden during the period 1980–2003. The theoretical background is a variant of the “Imperfect competition model of inflation”, which assumes imperfect competition in the labour and product markets. According to the model wages and prices are determined as a result of a “battle of mark-ups” between trade unions and firms. The Johansen maximum likelihood cointegration approach is applied to quarterly Swedish data on consumer prices, import prices, private-sector nominal wages, private-sector labour productivity and the total unemployment rate for the period 1980:1–2003:3. The chosen cointegration rank of the estimated vector error correction (VEC) model is two. Thus, two cointegration relations are assumed: one for private-sector nominal wage determination and one for consumer price determination. </p><p>The estimation results indicate that an increase of consumer prices by one per cent lifts private-sector nominal wages by 0.8 per cent. Furthermore, an increase of private-sector nominal wages by one per cent increases consumer prices by one per cent. An increase of one percentage point in the total unemployment rate reduces private-sector nominal wages by about 4.5 per cent. The long-run effects of private-sector labour productivity and import prices on consumer prices are about –1.2 and 0.3 per cent, respectively. The Rehnberg agreement during 1991–92 and the monetary policy shift in 1993 affected the determination of private-sector nominal wages, private-sector labour productivity, import prices and the total unemployment rate. The “offensive” devaluation of the Swedish krona by 16 per cent in 1982:4, and the start of a floating Swedish krona and the substantial depreciation of the krona at this time affected the determination of import prices.</p>

Study IReal Wage Determination in the Swedish Engineering Industry This study uses the monopoly union model to examine the determination of real wages and in particular the effects of active labour market programmes (ALMPs) on real wages in the engineering industry. Quarterly data for the period 1970:1 to 1996:4 are used in a cointegration framework, utilising the Johansen's maximum likelihood procedure. On a basis of the Johansen (trace) test results, vector error correction (VEC) models are created in order to model the determination of real wages in the engineering industry. The estimation results support the presence of a long-run wage-raising effect to rises in the labour productivity, in the tax wedge, in the alternative real consumer wage and in real UI benefits. The estimation results also support the presence of a long-run wage-raising effect due to positive changes in the participation rates regarding ALMPs, relief jobs and labour market training. This could be interpreted as meaning that the possibility of being a participant in an ALMP increases the utility for workers of not being employed in the industry, which in turn could increase real wages in the industry in the long run. Finally, the estimation results show evidence of a long-run wage-reducing effect due to positive changes in the unemployment rate. Study IIIntersectoral Wage Linkages in Sweden The purpose of this study is to investigate whether the wage-setting in certain sectors of the Swedish economy affects the wage-setting in other sectors. The theoretical background is the Scandinavian model of inflation, which states that the wage-setting in the sectors exposed to international competition affects the wage-setting in the sheltered sectors of the economy. The Johansen maximum likelihood cointegration approach is applied to quarterly data on Swedish sector wages for the period 1980:1–2002:2. Different vector error correction (VEC) models are created, based on assumptions as to which sectors are exposed to international competition and which are not. The adaptability of wages between sectors is then tested by imposing restrictions on the estimated VEC models. Finally, Granger causality tests are performed in the different restricted/unrestricted VEC models to test for sector wage leadership. The empirical results indicate considerable adaptability in wages as between manufacturing, construction, the wholesale and retail trade, the central government sector and the municipalities and county councils sector. This is consistent with the assumptions of the Scandinavian model. Further, the empirical results indicate a low level of adaptability in wages as between the financial sector and manufacturing, and between the financial sector and the two public sectors. The Granger causality tests provide strong evidence for the presence of intersectoral wage causality, but no evidence of a wage-leading role in line with the assumptions of the Scandinavian model for any of the sectors. Study IIIWage and Price Determination in the Private Sector in Sweden The purpose of this study is to analyse wage and price determination in the private sector in Sweden during the period 1980–2003. The theoretical background is a variant of the “Imperfect competition model of inflation”, which assumes imperfect competition in the labour and product markets. According to the model wages and prices are determined as a result of a “battle of mark-ups” between trade unions and firms. The Johansen maximum likelihood cointegration approach is applied to quarterly Swedish data on consumer prices, import prices, private-sector nominal wages, private-sector labour productivity and the total unemployment rate for the period 1980:1–2003:3. The chosen cointegration rank of the estimated vector error correction (VEC) model is two. Thus, two cointegration relations are assumed: one for private-sector nominal wage determination and one for consumer price determination. The estimation results indicate that an increase of consumer prices by one per cent lifts private-sector nominal wages by 0.8 per cent. Furthermore, an increase of private-sector nominal wages by one per cent increases consumer prices by one per cent. An increase of one percentage point in the total unemployment rate reduces private-sector nominal wages by about 4.5 per cent. The long-run effects of private-sector labour productivity and import prices on consumer prices are about –1.2 and 0.3 per cent, respectively. The Rehnberg agreement during 1991–92 and the monetary policy shift in 1993 affected the determination of private-sector nominal wages, private-sector labour productivity, import prices and the total unemployment rate. The “offensive” devaluation of the Swedish krona by 16 per cent in 1982:4, and the start of a floating Swedish krona and the substantial depreciation of the krona at this time affected the determination of import prices.

Abstract This research examines the relationship between the product and labor market in a situation when there is imperfect competition in the product market. The subjects studied are the existence of the mark-up factors implied by imperfect competition and their impacts on labor demand. The dependency of labor demand on the product demand is also examined. In the research the existence of the mark-up factors in Finnish companies can be verified. In addition, according to results, the mark-up factors have negative impact on labor demand. Product demand has a significant positive effect on labor demand. However, the transmission mechanism from the product demand changes to labor demand remains to some extent unsolved.

Notre travail de recherche dans le cadre de cette thèse a porté sur les effets de la libéralisation commerciale sur le marché du travail des pays en voie de développement, avec une application spécifique à l'économie tunisienne. Nous avons structuré notre analyse sur le sujet autour de deux axes. Dans un premier temps, nous avons étudié l'impact des échanges commerciaux sur le marché du travail, et dans un deuxième temps nous avons étudié le rôle du changement technologique induit par l'ouverture commerciale. Notre recherche a présenté et discuté la littérature théorique et empirique et les faits stylisés sur le sujet. Dans notre cas d'étude sur la Tunisie nous avons estimé les équations de l'emploi total, de l'emploi du travail qualifié, de l'emploi du travail non qualifié, de l'emploi relatif entre le travail qualifié et non qualifié et du salaire réel. Les variables clés dans ces équations sont celles qui mesurent les échanges commerciaux et celles qui mesurent le changeme nt technologique importé.Les principaux résultats peuvent être résumés de la manière suivante :- L'ouverture commerciale a joué un rôle important dans le changement de la structure de l'emploi sur le marché du travail tunisien.- Le marché du travail tunisien enregistre les mêmes évolutions que celles observées dans plusieurs pays en voie de développement (tels que les pays d'Amérique Latine et d'Asie de l'Est).- Ces évolutions se manifestent par une augmentation de l'emploi relatif du travail qualifié par rapport au travail non qualifié.- Les statistiques descriptives montrent que les inégalités de salaire ont augmenté en Tunisie.- Le changement technologique biaisé vers les travailleurs qualifiés a été un facteur déterminant dans cette évolution en Tunisie. La technologie incorporée dans les machines et les équipements importés augmente l'emploi relatif des travailleurs qualifiés par rapport aux travailleurs non qualifiés. / We analyse the effects of trade liberalization on the labor market of developing countries, with specific application to the Tunisian economy. We have structured our analysis around two axes. Initially, we studied the impact of trade on the labor market, and in a second step we studied the role of technological change induced by trade openness. Our research presented and discussed the theoretical and empirical literature and stylized facts on the subject. In our study of Tunisian case we estimated equations of total employment, employment of skilled labor, employment of unskilled labor, relative employment between skilled and unskilled labor and real wages. The key variables in these equations are those which measure the trade and those that measure the imported technology.The main results can be summarized as follows:- Trade openness has played an important role in changing the structure of employment in the Tunisian labor market.- The evolution of Tunisian labor market has the same trends as those observed in several developing countries (such as the countries of Latin America and East Asia).- These changes are manifested by an increase in employment of skilled labor relative to unskilled labor.- The descriptive statistics show that wage inequality increased in Tunisia.- Technological change biased towards skilled workers has been a factor in this evolution in Tunisia. The technology embodied in imported machinery and equipment raises relative employment of skilled workers relative to unskilled workers.

Do Structural Funds and Cohesion Fund contribute to the improvement of economic performance across Slovak districts? In order to answer the question this thesis explores the impact of EU funds invested within specific operational programmes over the programming periods 2007-2013 and 2014-2020 on the decrease in unemployment rate and on the increase in real wage and employment rate. Besides the standard panel data regression technique we also apply a spatial autoregressive model due to the presence of spillover effects between regions. This thesis thus goes beyond the existing literature on the evaluation of the impact of EU funds in Slovakia as it incorporates spatial effects in the analysis. In comparison with the results of the baseline fixed effects model, the estimated impact of EU funds in the spatial autoregressive model is smaller and in certain cases even negative. Hence the results raise doubts about the efficiency of EU funds. Furthermore, after including the spatial effects we find that the existence and significance of the economic convergence across Slovakia depends not only on the chosen economic indicator but also on the specification of regional units.