After three years in college, football players face a trade-off between spending more time in college and pursuing a career in the National Football League (NFL). We analyze the salaries for rookies in the NFL and instrument the endogenous decision to enter the professional market with the month...

Poaching externality, arising from job-to-job turnovers, implies that a planner should allocate fewer resources to costly job creations. However, these search efforts increase competition among employers, and this could in turn internalize the externality, whereas the congestion externality...

Within the context of a product variety model, this paper examines the impact of outsourcing of skill-intensive tasks on the skilled–unskilled wage gap. Outsourcing affects the wage gap through direct as well as indirect channels. While outsourcing decreases the effective wage of skilled...

This paper disentangles the effect of inequality in permanent and transitory wages on hours worked by, first, estimating the two components for Swedish industries and, second, using the resulting estimates as explanatory variables in an hours-worked equation. Consistent with Bell and Freeman’s...

This study examines whether task-specific jobs are rewarded differently across establishments of different sizes and whether these rewards vary across distinct technologies. We found that the aggregate premium estimates on the impact of size on wages conceal significant differences between tasks...

We describe a model of multi-trait matching and inheritance in which individuals’ attractiveness in the marriage market depends on their market and non-market characteristics. Gender differences in social mobility can arise if market characteristics are relatively more important in determining...

The standard approach to the estimation of schooling returns disregards earnings persistence. Using longitudinal data for Belgian male workers (ECHP, 1994–2001), we show that earnings persistence matters.

We analyze the gender wage gap in experimental markets. Women receive but do not request significantly lower wages than men. This hurts firms, as women react with low effort. Additionally, women tend to react differently than men to wage levels.

This paper examines the issue of skilled–unskilled wage inequality in the shortrun when varieties of producer services are traded. It is shown that, irrespective of the relative size of income share of capital, inflow of neither skilled nor unskilled labour affects skilled–unskilled wage...

This paper estimates the employer-size wage effect on returns to unobservable skills and measured human capital variables using a novel methodology that allows us to estimate a high number of interactions between unobserved effects and firm size. Our results show that in large firms, returns to...