Firms can decide whether to produce some goods and services in-house or purchase them from the market. Increasingly, they are purchasing from the market - using subcontractors, temp agencies, and other outsourced labor. Low-wage workers' wages decline when they are outsourced, but little is...

Using linked employer-employee data, I compute firm-level measures of the labor supply elasticity facing each private non-farm firm in the US. I provide the first direct evidence of the positive relationship between a firm's labor supply elasticity and the earnings of its workers. I also...

Using linked employer-employee data, I compute firm-level measures of the labor supply elasticity facing each private non-farm firm in the US. I provide the first direct evidence of the positive relationship between a firm's labor supply elasticity and the earnings of its workers. I also...

This paper analyzes the effects of the minimum wage on wage inequality, relative employment and over-education. Using an efficiency wage model we show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and...

Recent empirical contributions in labor economics suggest that individual firms face upward sloping labor supplies. We rationalize this by assuming that idiosyncratic non-pecuniary conditions interact with money wages in workers' decisions to work for specific firms. Likewise, firms supply...

In this paper I investigate the impact of informality on earnings inequality in Russia using RLMS-HSE data for 2000-2010. I find that during the whole period earnings inequality was substantially higher in the informal sector. Informality increases earnings polarization, thereby widening both...

When measuring income dynamics, discrete labor market events have been traditionally ignored. However, income trajectory and labor market history are intricately linked. In this paper, I use the stochastic EM algorithm to estimate a tractable statistical framework that combines discrete events...

The rising industry concentration in the U.S. has raised concern that it reduces workers' outside options and gives employers the ability to lower earnings. Meanwhile, when firms make outsized profits-as they might when they have a large share of the market- they may share with workers in the...

We use novel surveys of firms and workers, linked to administrative employer-employee data, to study the prevalence and importance of individual bargaining in wage determination. We show that simple survey questions accurately elicit firms' bargaining strategies. Using the elicited strategies...

Using an efficiency wage model we show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and produce a fall in inequality. Evidence from the US suggests that these theoretical results are empirically...