{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DECDI","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2025-10-04","version":"1"},"project_desc":{"authoring_entity":[{"name":"Ana Cusolito","affiliation":"World Bank","email":"acusolito@worldbank.org"}],"title_statement":{"title":"Reproducibility package for On The Principle Of Second Best In Labor Markets","idno":"RR_EUR_2025_432"},"data_statement":"All data is restricted and has not been included in the reproducibility package.","software":[{"name":"Stata","version":"18.5 MP"}],"scripts":[{"title":"Reproducibility package for On The Principle Of Second Best In Labor Markets","date":"2025-10","notes":"Computational reproducibility verified by Development Impact (DECDI) Analytics team, World Bank.","instructions":"See README in reproducibility package.","file_name":"RR_EUR_2025_432","zip_package":"RR_EUR_2025_432.zip","dependencies":"Stata dependencies are listed in the ado folder."}],"repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"production_date":"2025-10-04","abstract":"This paper presents an integrated framework to identify the determinants of growth in jobs, wages, and wage inequality using harmonized firm-level data for 13 European and Central Asian countries during the period 2006-2024. The paper shows that policies that increase firms\u2019 revenues are more effective than those that reduce labor costs to generate new jobs. Reducing sales taxes, rather than labor taxes is more effective to raise employment. A 1 p.p reduction in sales taxes increases jobs by 0.07% percent. Allowing imperfect competition in labor and product markets also increase jobs. But the effect of markups on employment is 14.3 times larger than that of markdowns. The paper also shows that imperfect competition both in labor and product markets are relevant to explain jobs, wages, and wage dispersion. The results show that if imperfect competition in labor markets cannot be addressed, then it\u2019s better to have imperfect competition in product markets, as the positive effect of markdowns on jobs is exacerbated by markups, while the negative effect on wages is attenuated by them. Equity-wise, allowing imperfect competition in both markets is a better policy choice than allowing monopolistic or oligopolist market structures only in the labor market.","geographic_units":[{"name":"Europe","code":"EUR"}],"keywords":[{"name":"Jobs"},{"name":"Wages"},{"name":"Wage Inequality"},{"name":"Competition In Labor And Product Markets"}],"topics":[{"id":"J21","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Labor Force and Employment, Size, and Structure","parent_id":"J2"},{"id":" J23","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Labor Demand","parent_id":"J2"},{"id":" J31","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Wage Level and Structure \u2022 Wage Differentials","parent_id":"J3"},{"id":" L12","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Monopoly \u2022 Monopolization Strategies","parent_id":"L1"},{"id":" L13","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Oligopoly and Other Imperfect Markets","parent_id":"L1"}],"output":[{"type":"Published Paper","description":"Journal Article","title":"On The Principle Of Second Best In Labor Markets"}],"language":[{"name":"English","code":"EN"}],"technology_requirements":"Runtime: 3 hours.","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"name":"Ana Cusolito","affiliation":"World Bank","email":"acusolito@worldbank.org"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}],"datasets":[{"name":"Harmonized enterprise survey data for Europe and Central Asia","note":"Source: World Bank. Data was provided by the data producer (Leonardo Iacovone - liacovone@worldbank.org), at the Trade, Investment and Competitiveness (TIC) Global Practice of the World Bank. Data was accessed on March 19, 2025. Data file: \"ECA_database_fullsample_withTFP_compress_reduced.dta\".","access_type":"Data access was granted directly to the study authors by the data owners and is not included in the reproducibility package.","citation":"Trade, Investment and Competitiveness Global Practice - World Bank.\nn.d.\n\"Harmonized enterprise survey data for Europe and Central Asia [dataset]\".\nUnpublished data.\nAccessed on March 19, 2025."}],"technology_environment":"Paper exhibits were reproduced on a computer with the following specifications:\n\u2022 OS: Windows 11 Enterprise, version 24H2\n\u2022 Processor: Intel(R) Core(TM) Ultra 7 165U (2.10 GHz)\n\u2022 Memory available: 32 GB","reproduction_instructions":"**1. Access the data:** All data used in the package are restricted. See the README and the Datasets section for details.\n**2. Download and place the data:** Once all data are obtained, copy it to the corresponding folder as noted in the README.\n**3. Run the code:** Adjust the folder path in line 9 of the do-file \"#0 Master\" and run the code."},"tags":[{"tag":"DOI"},{"tag":"Open Code"},{"tag":"Restricted Data"}],"schematype":"script"}