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This paper builds, identifies and estimates a model of the labor market that features strategic interactions in wage setting and two-sided heterogeneity in order to shed light on the sources of wage inequality. We provide a tractable characterization of the model equilibrium and demonstrate its...
Persistent link: https://www.econbiz.de/10014544771
Over the last several decades, rising pay dispersion between firms accounts for the majority of the dramatic increase in earnings inequality in the United States. This paper shows that a distinct cross-cohort pattern drives this rise: newer cohorts of firms enter more dispersed and stay more...
Persistent link: https://www.econbiz.de/10014226174
Labor market tightness following the height of the Covid-19 pandemic led to an unexpected compression in the US wage distribution that reflects, in part, an increase in labor market competition. Rapid relative wage growth at the bottom of the distribution reduced the college wage premium and...
Persistent link: https://www.econbiz.de/10014247930
What is the impact of the minimum wage on the college wage premium? I show that job-ladder models imply that the effect should be small on impact---raising only the wages of workers bound by the minimum wage---and grow over time as workers slowly move up the job ladder. Guided by my theory, I...
Persistent link: https://www.econbiz.de/10014247949
We document systematic differences in wage and earnings inequality between and within occupations and show that these differences are intimately related to systematic differences in labor supply across occupations. We then develop a variant of a Roy model in which earnings are a non-linear...
Persistent link: https://www.econbiz.de/10014372422
Using comparable data for 24 countries since the 1970s, we document gender convergence in schooling, employment and …-earners have clear positive impacts on lone mothers' employment and negligible impacts on other groups. While most of this …
Persistent link: https://www.econbiz.de/10013462733
. 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