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KTI Seminar: Bíró, Anikó – Labor Market Tightness, Wage Inequality and Workplace Amenities

The presentation will take place in a hybrid format via zoom interface or in person in the room K.0.11-12 on 16.01.2025, from 13.00.

Speaker: Bíró, Anikó

Title: Labor Market Tightness, Wage Inequality and Workplace Amenities (Anikó Bíró, Joao G. da Fonseca, Attila Lindner, Tímea Laura Molnár)

Abstract:

Firm-level wage premium increases on average with labor market tightness. We focus on the role of compensating wage differentials behind this relation, as competition increases the need for compensation for bad amenities. Using administrative data from Hungary, we proxy bad amenities with the workplace related risk of injury, and study how bad amenities are reflected in firm wage premium over the business cycle. We also document how firm quality is affected by increased worker compensation. Finally, we provide a theoretical background to our results in a search and matching framework.