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We show that a minimum wage introduced in the presence of asymmetric information about worker productivities will lead to lower unemployment levels than predicted by the standard labour market model with heterogeneous labour and symmetric information.
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time, the model predicts that foreign investors deduct the economic value of learning from wages of inexperienced workers … experience contributes more to local firms' than to MNEs' productivity. In this case, experienced MNE workers are hired by …
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