This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local...

We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in...

We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in...

We model a standard competitive labour market where firms choose combinations of workers and hours per worker to produce output. If one assumes that the scale of production has no impact on hours per worker, then the change in the number of workers and hours per worker resulting from a minimum...

We use an equilibrium search framework to model a formal- informal sector labour market where the informal sector arises endogenously. In our model large firms will be in the formal sector and pay a wage premium, while small firms are characterised by low wages and tend to be in the informal...

If employers believe females are more likely to separate from a job than males, efficient cost sharing of on-the-job-training implies that females will have higher returns to tenure. Becker and Lindsay (1994) argue that this is true empirically. (1994). Updating the analysis we find that that...

In a competitive model we ease the assumption that efficiency units of labour are the product of hours and workers. We show that a minimum wage may either increase or decrease hours per worker and the change will have the opposite sign to the slope of the equilibrium hours hourly wage locus....

I argue that in contrast to the literature to date efficiency wage and bargaining solutions will typically be independent. If the bargained wage satisfies the efficiency wage constraint efficiency wages are irrelevant. If it does not, typically we have the efficiency wage solution and bargaining...

A monopsony model of the labour market is developed where wages and the effort level are chosen by the firm. Higher wages raise labour supply while higher effort reduces it. Wages will be below the socially optimal level while effort will be too high. Under a sufficient condition which is...