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It is often argued that a mandatory minimum wage is binding only if the wage density displays a spike at it. In this Paper we analyse a model with search frictions and heterogeneous production technologies, in which imposition of a minimum wage affects wages even though, after imposition, the...
Persistent link: https://www.econbiz.de/10005666625
agglomeration. The nature of those benefits remains unclear, however. In this Paper we take advantage of a new dataset to quantify …
Persistent link: https://www.econbiz.de/10005497954
the quality of the match between job and worker, trade liberalization may lead to industrial agglomeration and inter …-industry trade. The agglomeration force is the improvement in the quality of matches when firms recruit from a bigger pool of labour …. The forces against agglomeration are the existence of trade costs and monopoly power in the labour market. We show that …
Persistent link: https://www.econbiz.de/10005791724