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those that succeed at rent-seeking. Second, such activities affect the allocation of resources within firms because rent …-seeking drives resources away from innovation. These two channels can help in understanding why Argentina has more misallocation …
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The growing finance wage premium is related to a modest net reallocation of skilled workers from non-finance sectors into finance in a broad sample of 24 countries over 35 years. The reallocation is higher when the finance wage premium grows faster than the contribution of the financial sector...
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