We develop a model in which competition in the labor market may produce worker-firm matches that are inferior to those obtained in the absence of competition. This result contrasts with the conventional wisdom that competition among employers allocates scarce talent efficiently. In a model in...

This paper documents an inverse U-shape in the evolution of wage inequality in Latin America since 1995, with a sharp reduction starting in 2002. The Gini coefficient of wages increased from 42 to 44 between 1995 and 2002 and declined to 39 by 2015. Between 2002 and 2015, the 90/10 log hourly...

Labor market institutions shape the return to workers’ skills. They define the incentives of firms and workers to invest in general and specific skills, affecting the returns to experience and tenure. This paper presents an empirical assessment of this hypothesis. We take advantage of rich...

We present a model in which firms compete for workers who have a taste for a nonpecuniary job attribute, such as purpose, sustainability, ES/CSR, or working conditions. Firms can invest in flexible production technologies that allow them to create jobs with different levels of the desirable job...

This paper studies the effects of automation of production on labor market outcomes, and whether there is an effect of automation on functional and personal inequality in Latin America. The paper combines several data sources and empirical strategies in order to approach the issues from...

We examine the impact of changes in local labor market concentration on two components of income inequality in Mexico: local wage shares and labor income inequality. Combining data from the Economic Census and the Population and Housing Censuses, we analyze the mechanisms that drive the...