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We analyze labor market models where the law of one price does not hold-that is, models with equilibrium wage dispersion. We begin by assuming workers are ex ante heterogeneous, and highlight a flaw with this approach: if search is costly, the market shuts down. We then assume workers are...
Persistent link: https://www.econbiz.de/10014400958
Search models with posting and match-specific heterogeneity generate wage dispersion. Given K values for the match-specific variable, it is known that there are K reservation wages that could be posted, but generically never more than two actually are posted in equilibrium. What is unknown is...
Persistent link: https://www.econbiz.de/10014402407
Using Chilean data, we document that for resource-rich small open economies the effects of terms of trade shocks on the wage gap (between skilled and unskilled workers) depend on factor intensities in the non-tradable sector, following the model in Galiani, Heymann, and Magud (2010). For a...
Persistent link: https://www.econbiz.de/10014403224
Governments often intervene in labor markets with the aim of reducing inequality and promoting employment. Such intervention often results in wage compression and restrictions on how firms use their workers. This paper investigates the impact of such interventions on the labor market conditions...
Persistent link: https://www.econbiz.de/10014404032
The staff report for the 2011 Article IV Consultation concluded that a vibrant recovery marked Estonia’s first year in … prudent macroeconomic policies. Executive Directors endorsed that Estonia faces an increasingly challenging environment as it …
Persistent link: https://www.econbiz.de/10014397439
This report describes recent economic developments in the Republic of Estonia. The report highlights that after a … GDP by sector reflect the continuing adjustment of Estonia’s economy to fundamental systemic change and the institutional …
Persistent link: https://www.econbiz.de/10014397694
This Selected Issues paper assesses the economic recovery in Estonia that began in 1994 and accelerated in 1995 … lists the policy requisites to maintain, and indeed strengthen, the growth momentum. The paper also analyzes Estonia …
Persistent link: https://www.econbiz.de/10014397778
for the Republic of Estonia. The paper highlights that intergovernmental relations in Estonia have been marked in recent … structural change, including privatization and liberalization of markets in Estonia. The paper analyzes the evolution of the … financial sector. It also examines European Union accession and the economic policy of Estonia …
Persistent link: https://www.econbiz.de/10014398018
This Selected Issues paper and Statistical Appendix analyzes the progress made by Estonia since independence. It takes … stock of the developments in the banking system and describes how the number of banks in Estonia has been reduced through a … in Estonia …
Persistent link: https://www.econbiz.de/10014398366
This 1999 Article IV Consultation highlights that real GDP growth of Estonia slowed to 4 percent in 1998. Tighter … Russian crisis on growth was relatively modest, mainly because Estonia had reoriented most of its trade to the West and the …
Persistent link: https://www.econbiz.de/10014398396