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This essay investigates the interaction between demand uncertainty and non-competitive labor markets where firm owners have the option to shut down and relocate. Workers cannot find new jobs instantly and therefore accept wage reductions to avoid unemployment, if firm owners credibly threaten to...
Persistent link: https://www.econbiz.de/10005651694
This paper examines the relationship between immigrant occupational composition and wages in Sweden. Effects of changes … estimated. Our results suggest that increases in immigrant density have only small effects on wages and that the negative … relationship between wages and the proportion of immigrant workers in an occupation, observed in data, is almost entirely accounted …
Persistent link: https://www.econbiz.de/10008562420
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This essay presents a new theory explaining increased wage inequality. A standard endogenous growth model is augmented with occupational choice of highskill workers. Depending on the occupational choice, high-skill workers earn either a certain or uncertain income. Wage inequality, measured by...
Persistent link: https://www.econbiz.de/10005423959