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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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In this model of education, where individuals are exposed both to educational risk and to wage risk within the skilled sector, successful graduation depends both on individual effort to study and on public resources. We show that insuring the present risks is a dichotomic task: Wage risk is...
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In recent years, a large academic debate has tried to explain the rapid rise in CEO pay experienced over the past three decades. In this article, I review the main proposed theories, which span views of compensation as the result of a competitive labor market for executives to theories based on...
Persistent link: https://www.econbiz.de/10013316448
Many European countries restrict immigration from new EU member countries. The rationale is to avoid adverse wage and employment effects. We quantify these effects for Germany. Following Borjas (2003), we estimate a structural model of labor demand, based on elasticities of substitution between...
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question with unique data on ICT skills tested in 19 countries. Our two instrumental-variable models exploit technologically … induced variation in broadband Internet availability that gives rise to variation in ICT skills across countries and German … municipalities. We find that a one-standard-deviation increase in ICT skills raises earnings by about 25 percent. Exogenous broadband …
Persistent link: https://www.econbiz.de/10012997356
How skills acquired in vocational education and training (VET) affect wages and employment is not clear. We develop and … skills, while firms require and value different combinations of these skills. Assuming that match productivity exhibits … wages. We find that firms value cognitive skills on average almost twice as much as interpersonal and manual skills, and …
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