Pereira, Sonia Cecilia Nobre de Sousa Morais; (2003) Employment, Careers and Productivity: Lessons from Three E.U. Countries. Doctoral thesis (Ph.D), UCL (University College London).

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Abstract

This thesis is composed of four empirical studies which use data from Portugal, the United Kingdom and Germany to examine four topical aspects of employment, careers and productivity in these countries' labour markets. The second chapter studies the impact that a 49.3% change in the legal minimum wage for workers aged 18 and 19 in Portugal had on the wages and employment of this age group of workers. It uses firm-level micro data to compare the employment growth of 18-19 year old workers with employment growth of older workers. It also looks separately at firms more and less likely to be affected by the minimum wage shock. The third chapter studies the impact of foreign direct investment (FDI) on the productivity of domestic firms in the UK. It uses a plant-level panel covering UK manufacturing to find evidence of FDI spillovers. It does so by investigating the correlation between a domestic plant's TFP and the foreign-affiliate share of employment in that plant's industry and, independently, in that plant's region. A number of different specifications are estimated in order to minimise potential endogeneity bias. The fourth chapter estimates returns to job tenure and labour market experience in the United Kingdom and Germany using various methods to correct for heterogeneity and endogeneity biases. It also estimates the returns to tenure and experience by qualification group. Results are interpreted in light of the differences between the two labour market's institutions. The fifth chapter compares returns to tenure and experience in union and non-union jobs in the United Kingdom in the 80s and 90s. It uses longitudinal data and instrumental variables methods to correct for potential individual and job match heterogeneity biases. Returns are also calculated separately for jobs with and without seniority wage scales.

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