Although the college-high school wage gap for younger U. S. men has doubled over the past 30 years, the gap for older men has remained nearly constant. In the United Kingdom and Canada the college-high school wage gap also increased for younger relative to older men. Using a model with imperfect...

We begin with two uncontroversial hypotheses - firm productivity is expensive to measure and employment entails relationship-specific investments. These assumptions imply that firms would optimally choose fixed-wage contracts, and complement these with bonus pay when measuring employee...

This paper proposes an empirical approach to decompose the distributional effects of minimum wages into effects for workers moving out of employment, workers moving into employment, and workers continuing in employment. We estimate the effects of the minimum wage on the hazard rate for wages,...

In this paper, the authors estimate the effect of the financial conditions of firms on negotiated wage settlements and on employment using a sample of Canadian collective bargaining agreements from 1965 to 1983. They find that ordinary least squares estimates of the effect of quasi-rents per...