advantage in the most complex tasks relative to capital, and because the wages of the least skilled workers are sufficiently low … relative to their productivity and the effective cost of capital in low-complexity tasks. Minimum wages and other sources of … higher wages at the bottom make interior automation less likely. Starting with interior automation, a reduction in the cost …

This paper explains why firms with identical opportunities may use different technologies and offer different wages …). In equilibrium, some firms adopt high fixed cost, high productivity technologies, offer high wages, and fill job openings … quickly. Other firms adopt less capital-intensive technologies and offer lower wages, hiring mostly uninformed workers. In …

training are borne by workers. When labor market frictions compress the structure of wages, firms may pay for these investments …

the marginal product and wages of lower-skill teachers …

the marginal product and wages of lower-skill teachers …

, potentially increasing the marginal product and wages of lower-skill teachers …