This paper tests whether the job security offered by stricter employment protection legislation (EPL) undermines positive compensating wage differentials that would otherwise be paid. Specifically, we ask whether industries with relatively more need for layoffs and labour flexibility have lower...

Using the postal service as an example, this article highlights the critical role played by a series of “implicit” judgments when estimating the government earnings differential. Regression estimates demonstrate that alternative treatments of location, gender, industry, occupation and union...