Objective
Research objectives and content
There is a widespread view that the rise in European unemployment in the last two decades has been due to due to excess wage rigidity. Until 1991 wages of Italian workers have automatically adjusted to realised inflation via the Scala Mobile, an indexation mechanism with re-distributive effects. This project aims at answering the following demand: Did the wage protection offered to low wageworkers by this mechanism imply detrimental employment effects at the bottom of the skill distribution? The research articulates into a first part in which micro foundations for the behaviour of firms and workers are laid and a second one where a demand function for labour based on the testable implications of the model is estimated I argue that the Scala Mobile can be usefully employed to uncover the relationship between wages and quantities along a firm labour demand curve.
Training content (objectives benefit and expected impact)
By testing the hypothesis that labour market "rigidity" can be blamed for the rise in unemployment, this research aims to provide a base for discussions on efficient systems of labour relations, ways of achieving redistribution of resources and in particular should shed some light on the causes of increased unemployment and in Europe and its possible cures.
Links with industry / industrial) relevance (22)
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- social sciences economics and business business and management employment
- social sciences sociology social issues unemployment
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
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Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Coordinator
28903 GETAFE
Spain
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.