We develop a three-country heterogeneous-firm model and show that FDI liberalization in one foreign country (F1) results in the following: (i) some firms from the home country switch from export to FDI in F1; (ii) skilled labor¡¯s wage rate drops in the home country; (iii) wage inequality...

Microeconomic data on individual firms and employer-employee matches reveal substantial and persistent dispersion in firm size, productivity, and average wage paid and a positive correlation between each pair. To the extent that intrinsic differences in firm productivity explain these facts,...

Este articulo analiza el impacto de la competencia de mercado sobre los retornos a la escolaridad en Mexico, un pais que se encuentra rezagado en indicadores de competencia y con un mercado laboral complejo. Utilizando microdatos de las encuestas de empleo, primero separamos el premio por nivel...

We posit that larger employers possess greater information than smaller employers about the effects of on-the-job training (OJT) investments on the productivity of their workers. As a result, larger employers pay a greater percentage of OJT costs, and OJT is effectively more firm-specific at...

We use a novel dataset and research design to empirically detect the effect of social interactions among neighbors on labor market outcomes. Specifically, using Census data that characterize residential and employment locations down to the city block, we examine whether individuals residing in...

The informal sector plays an important role in the functioning of labor markets in emerging economies. To characterize better this highly heterogeneous sector, we conduct a distributional analysis of the earnings gap between informal and formal employment in Brazil, Mexico and South Africa,...