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Endogenous Monopsony and the Perverse Effect of the Minimum Wage in Small Firms
Danziger, Leif - 2021
The minimum wage rate has been introduced in many countries as a means of alleviating the poverty of the working poor. This paper shows, however, that an imperfectly enforced minimum wage rate causes small firms to face an upward-sloping labor supply schedule. Since this turns these firms into...
Persistent link: https://www.econbiz.de/10013316334
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Two-Way Migration between Similar Countries
Kreickemeier, Udo - 2015
We develop a model to explain two-way migration of high-skilled individuals between countries that are similar in their economic characteristics. High-skilled migration results from the combination of workers whose abilities are private knowledge, and a production technology that gives...
Persistent link: https://www.econbiz.de/10013010487
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The Bazaar Effect, Unbundling of Comparative Advantage, and Migration
Kohler, Wilhelm - 2007
with high-skilled and low-skilled labor. I address wage and welfare effects under flexible wages, and under a minimum wage …
Persistent link: https://www.econbiz.de/10012777491
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Restrictive Immigration Policy in Germany : Pains and Gains Foregone?
Felbermayr, Gabriel J.; Geis, Wido; Kohler, Wilhelm - 2021
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...
Persistent link: https://www.econbiz.de/10013316525
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Minimum Wages and the Labor Market Effects of Immigration
Edo, Anthony - 2017
We exploit the non-linearity in the level of minimum wages across US States created by the coexistence of federal and … state regulations to investigate how minimum wages affect the labor market impact of immigration. We find that the effects ….S. States with low minimum wages (i.e., where the federal minimum wage is binding). The results are robust to instrumenting …
Persistent link: https://www.econbiz.de/10012951556
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Slow to Hire, Quick to Fire : Employment Dynamics with Asymmetric Responses to News
Ilut, Cosmin L. - 2017
Concave hiring rules imply that firms respond more to bad shocks than to good shocks. They provide a unified explanation for several seemingly unrelated facts about employment growth in macro and micro data. In particular, they generate countercyclical movement in both aggregate conditional...
Persistent link: https://www.econbiz.de/10012956881
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Distributional Consequences of Labor-Demand Shocks : The 2008-09 Recession in Germany
Bargain, Olivier - 2011
The distributional consequences of the recent economic crisis are still broadly unknown. While it is possible to speculate which groups are likely to be hardest-hit, detailed distributional studies are still largely backward-looking due to a lack of real-time microdata. This paper studies the...
Persistent link: https://www.econbiz.de/10013127632
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A Theory of Wage Adjustment Under Loss Aversion
Ahrens, Steffen - 2015
price. Firms adjust wages flexibly in response to variations in labor demand. The resulting theory of wage adjustment is … starkly at variance with past theories. In line with the empirical evidence, we find that (1) wages are completely rigid in … response to small labor demand shocks, (2) wages are downward rigid but upward flexible for medium sized labor demand shocks …
Persistent link: https://www.econbiz.de/10013030342
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Firm Response to Competitive Shocks : Evidence from China's Minimum Wage Policy
Hau, Harald - 2017
The large regional variation in minimum wage levels in the period 2002-08 in China implies that Chinese manufacturing firms experienced competitive shocks as a function of firm location and their low-wage employment share. We find that minimum wage hikes accelerate the input substitution from...
Persistent link: https://www.econbiz.de/10012947448
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Migration and Trade
Egger, Peter H. - 2011
Theoretical and empirical research in economics suggests that bilateral migration triggers bilateral trade through a number of channels. This paper assesses the functional form of the impact of migration on trade flows in a quasi-experimental setting. We provide evidence that the relationship is...
Persistent link: https://www.econbiz.de/10013124393