Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308512 
Year of Publication: 
2024
Citation: 
[Journal:] Journal for Labour Market Research [ISSN:] 2510-5027 [Volume:] 58 [Issue:] 1 [Article No.:] 24 [Year:] 2024 [Pages:] 1-23
Publisher: 
Springer, Heidelberg
Abstract: 
I estimate the effect of tightness on wages in Hungary and Slovakia. The Mortensen Pissarides model predicts a positive relationship but the empirical evidence is scarce. I instrument tightness by the distance of a district from the Austrian border, interacted with a dummy that marks the opening of the Austrian labour market to these countries in 2011. I find a positive effect of tightness on wages, which is in line with the conclusion of the models. If tightness increase by 1 per cent than ceteris paribus wages increase by roughly 0.2 per cent both in Hungary and Slovakia as well.
Subjects: 
Labour market tightness
Local labour markets
Wage equation
JEL: 
J31
J61
J63
J64
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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