-sharing due to search frictions implies that ‘good’ jobs which have higher creation costs must pay higher wages. This wage … induce firms to shift the composition of employment towards good jobs. As a result, such regulations, even though they will …

distortion in the wage structure turns ``technologically'' general skills into ``specific'' skills. Labor market frictions and … institutions, such as minimum wages and union wage setting, are crucial in shaping the wage structure, and thus have an important …

, because they prevent these workers from taking wage cuts necessary to finance training. We show that when the assumption of …, by inducing firms to train their unskilled employees. More generally, a minimum wage increases training for con …-strained workers, while reducing it for those taking wage cuts to finance their training. We provide new estimates on the impact of the …