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We argue that trade in intermediate inputs, or 'global production sharing,' is a potentially important explanation for the increase in the wage gap between skilled and unskilled workers in the U.S. and elsewhere. Using a simple model of heterogeneous activities within an industry, we show that...
Persistent link: https://www.econbiz.de/10012470348
Specialization alters the incidence of manufacturing trade costs to buyers and sellers, with pro-and anti-globalizing effects on 76 countries from 1990-2002. The structural gravity model yields measures of Constructed Home Bias (the ratio of predicted local trade to predicted frictionless local...
Persistent link: https://www.econbiz.de/10012462358
In Japan, the manufacturing has become geographically dispersed in the 1990s, when the import share has risen after the …
Persistent link: https://www.econbiz.de/10012468798
. It suggests that the pay and employment experience of low skilled Americans is a poor counterfactual for assessing how …
Persistent link: https://www.econbiz.de/10012471160
International Adult Literacy Survey we find that employment of skilled to unskilled labour is unrelated to differences in skill … premium but that changes in relative employment are related to changes in relative wages raising the possibility of some … substitution behavior. Still, the differing dispersion of wages is not a major contributor to differences in employment rates. The …
Persistent link: https://www.econbiz.de/10012471302
The paper analyzes the joint determination of wives' earnings and labor force participation over the life cycle given the interruptions in wives' work careers. The interruptions affect the profitability of the investment in human capital, which in turn determines earnings. The earnings prospects...
Persistent link: https://www.econbiz.de/10012478454
Over the last half century, U.S. wage growth stagnated, wage inequality rose, and the labor-force participation rate of prime-age men steadily declined. In this article, we examine these labor market trends, focusing on outcomes for males without a college education. Though wages and...
Persistent link: https://www.econbiz.de/10012479530
Labor market institutions, via their effect on the wage structure, affect the investment decisions of firms in labor markets with frictions. This observation helps explain rising wage inequality in the US, but a relatively stable wage structure in Europe in the 1980s. These different trends are...
Persistent link: https://www.econbiz.de/10012467955
I demonstrate that the literature on the racial wage gap has systematically overstated the gains made by African American men by ignoring their withdrawal from the labor force. Three sources of selection-bias are identified: imposing sample selection criteria based on labor supply, trimming...
Persistent link: https://www.econbiz.de/10012469227
points relative to male wages, but female employment has fallen 5 percentage points more than male employment. Using the … most important determinant of the hazard rate from employment. Differences in mean 1990 wages explain more than half of the … gender gap in this hazard rate, since low earners were more likely to leave employment, and were disproportionately female …
Persistent link: https://www.econbiz.de/10012472647