Why do individuals choose different types of post-secondary education, and what are the labor market consequences of those choices? We show that answering these questions is difficult because individuals choose between several unordered alternatives. Even with a valid instrument for every type...

The regional unemployment elasticity of annual earnings for Non-OECD immigrants is found to be more than three times larger than for natives, using micro data covering all immigrants in Norway in 1990 and a random sample of natives. The decline in relative earnings of Non-OECD immigrants from...

We construct a model integrating the efficiency wage model of Shapiro-Stiglitz (1984) with the matching-bargaining models of Diamond, Mortensen and Pissarides (DMP). Firms and workers form pairwise matches, workers may shirk on the job, and the wage is set in an asymmetric Nash bargain over the...

We study the effects of mobility costs in a model of wage bargaining between workers and firms, where there is instantaneous matching, free firm entry, heterogeneous labour, and workers' individual productivities are discovered by firms only after being hired. We derive the employment level and...

Despite some reductions in the male-female pay gap in the post-war period, gender differentials seem to persist in all industrial countries. This is also the case in the Scandinavian countries where the wage dispersion hase been compressed as a consequence of a "solidaric wage policy".

We investigate the effects of wage compression through centralized collective bargaining when growth depends on the continual reallocation of labor from older, less productive plants to new, more productive plants.

This paper was prepared for the Conference on Measures to Improve Wage Formation in Sweden, hosted by The Commission on the Strengthening of the Mediation Authority in Sweden; Stockholm 28 September 1998. The background for the conference was a series of concrete proposals made by employee and...