expensive older workers into retirement. Based on the seniority wage model developed by Lazear (1979), we discuss steep … seniority wage profiles as incentives for firms to dismiss older workers before retirement. Conditional on individual retirement … incentives, e.g., social security wealth or health status, the steepness of the wage profile will have different incentives for …

productivity across firms mirror the trends in the wage inequality across workers. Two distinct literatures have searched for a ….5% increase in wages.A second literature focuses on firm-specific wage premiums, using the wage outcomes of job changers. This … literature also concludes that firm pay setting is important for wage inequality, with many studies finding that firm wage …