The economic literature acknowledges that labor markets can often be described by monopsonistic competition. In such a structure, employers have market power and in the long run, zero profits due to the free entry and exit of firms. This article builds a model to analyze the role of minimum...

A vast literature aimed at understanding the nature and causes of wage inequality focuses on the skill premium as a key object of interest. In an environment where both the skill premium and the share of skilled workers are changing, however, the between-skill-group component of inequality may...

Social distancing and lockdown measures taken to contain the spread of COVID-19 may have distributional economic costs beyond the contraction of GDP. Here we evaluate the capacity of individuals to work under a lockdown based on a Lockdown Working Ability index which considers their teleworking...

Wage dynamics is closely intertwined with job flows. However, composition effects associated to the different sizes and characteristics of workers entering/ exiting into/from employment that may blur the "true" underlying wage growth, are not typically accounted for. In this paper, we take these...

In European Welfare States, low-skilled workers are typically unionized, while the wage formation of high-skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect wage formation, employment and welfare in dual...

This paper provides some empirical evidence and a theory of the relationship between residual wage inequality and the increasing dispersion of capital/labor ratios across firms. I document the increasing variance of capital/labor ratios across firms in the US labor market. I also show that the...

The UK and the US have experienced both rising skill premia and rising employment of skilled workers since the 1980s. These trends are typically interpreted as concurrent shifts of relative skill supplies and demands, and the demand shifts are attributed to skill-biased technological change or...

Using very detailed register data on cognitive abilities and productive personality traits for nearly all Swedish males at age 18, we show that employment in the recent past has shifted towards skill-intensive occupations. Employment growth is monotonically skill biased in relation to this set...

Using population-wide Swedish register data on cognitive abilities and productive personality traits, we show that employment growth has been monotonically skill-biased in terms of these general-purpose intellectual skills, despite a simultaneous (polarizing) decline in middle-wage jobs....

The strong empirical regularity of higher wages in large establishments seems to be ubiquitous. It was first brought to light by Moore (1911) and later confirmed by, among others, Brown and Medoff (1989), it prevails across countries and over time, across studies that span a broad range of...