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We study the effect of globalization on the volatility of wages and worker welfare in a model in which risk is … trade hurts rich-country workers, while reducing the volatility of their wages; by contrast, offshoring benefits them, while … raising the volatility of their wages. We thus formalize, but also sharply circumscribe, a common critique of globalization …
Persistent link: https://www.econbiz.de/10013152563
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Large institutional investors own an increasing share of the equity markets in the U.S. The implications of this development for financial markets are still unclear. The paper presents novel empirical evidence that ownership by large institutions predicts higher volatility and greater noise in...
Persistent link: https://www.econbiz.de/10012992142
We look at the effects of rainfall forecasts and realized rainfall on equilibrium agricultural wages over the course of … the agricultural production cycle. We show theoretically that a forecast of good weather can lower wages in the planting … stage, by lowering ex ante out-migration, and can exacerbate the negative impact of adverse weather on harvest-stage wages …
Persistent link: https://www.econbiz.de/10013060692
Using new data matching remittances and monthly payroll disbursals, we demonstrate how fluctuations in migrants' earnings in the United Arab Emirates affect their remittances. We consider three types of income fluctuations that are observable by families at home: seasonalities, weather shocks...
Persistent link: https://www.econbiz.de/10013027259
of Cleveland's Community Salary Survey (wages and employment for specific occupations for identified firms). We find … percent of the recent the rise in the high frequency (5-year) volatility of wages …
Persistent link: https://www.econbiz.de/10012767426
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earnings of continuing employees. While full insurance is rejected, the elasticity of worker earnings with respect to … wage insurance …
Persistent link: https://www.econbiz.de/10012964398
We show that firms' idiosyncratic volatility obeys a strong factor structure and that shocks to the common factor in idiosyncratic volatility (CIV) are priced. Stocks in the lowest CIV-beta quintile earn average returns 5.4% per year higher than those in the highest quintile. The CIV factor...
Persistent link: https://www.econbiz.de/10013054863
When there is uncertainty about a CEO's quality, news about the firm causes rational investors to update their expectation of the firm's profitability for two reasons: Updates occur because of the direct effect of the news, and also because the news can cause an updated assessment of the CEO's...
Persistent link: https://www.econbiz.de/10013085131