{"title":"Stochastic and Club Convergence in Real Wages in European Union: Evidence from Aggregate and Sector Level Data","authors":"Ivan D. Trofimov, Ahmed Sharaan","doi":"10.1142/s1793993323500023","DOIUrl":null,"url":null,"abstract":"The paper examined real wage convergence across 27 European economies, at aggregate and sectoral levels, using the panel unit root tests of stochastic convergence and the club clustering procedure. Convergence was absent for a panel as a whole, but present within the clubs. In most sectors, the common component of the relative wages was stationary, while idiosyncratic component contained unit roots, suggesting the country- and sector-specific drivers of convergence and only transitory effects of exogenous forces. The most pronounced club convergence was observed in the sectors characterized by significant labor mobility, knowledge intensity and speed of technological change.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":null,"pages":null},"PeriodicalIF":1.3000,"publicationDate":"2022-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Commerce Economics and Policy","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1142/s1793993323500023","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
The paper examined real wage convergence across 27 European economies, at aggregate and sectoral levels, using the panel unit root tests of stochastic convergence and the club clustering procedure. Convergence was absent for a panel as a whole, but present within the clubs. In most sectors, the common component of the relative wages was stationary, while idiosyncratic component contained unit roots, suggesting the country- and sector-specific drivers of convergence and only transitory effects of exogenous forces. The most pronounced club convergence was observed in the sectors characterized by significant labor mobility, knowledge intensity and speed of technological change.
期刊介绍:
Journal of International Commerce, Economics and Policy (JICEP) is a peer-reviewed journal that seeks to publish high-quality research papers that explore important dimensions of the global economic system (including trade, finance, investment and labor flows). JICEP is particularly interested in potentially influential research that is analytical or empirical but with heavy emphasis on international dimensions of economics, business and related public policy. Papers must aim to be thought-provoking and combine rigor with readability so as to be of interest to both researchers as well as policymakers. JICEP is not region-specific and especially welcomes research exploring the growing economic interdependence between countries and regions.