This paper provides evidence that labor reallocation from the manufacturing into the non-manufacturing sector causes an increase in sorting of high-skilled (low-skilled) workers into high-paying (low-paying) firms and thereby triggers a rise in wage inequality. I use data on 50% of all West...

This paper considers the "share-altering" technical change hypothesis in a spatial general equilibrium model where individuals have different levels of skills. Building on a simple Cobb-Douglas production function, our model shows that the implementation of skill-biased technologies requires a...

Empirical studies show that women are under-represented in highly paid top management positions of firms (glass-ceiling effect) which could be a cause of the gender wage gap. In order to study women's career paths, we develop a search and matching model where job ladders consist of three...

Job polarisation and increasing wage inequality is observed in many rich countries, including Germany. Both phenomena are well-discussed in international literature, though a link can only be observed in the U.S. I assess the impact of job polarisation upon wage inequality in Germany by...

This paper studies the implications of (endogenously) directed technical change for the design of non-linear labor income taxes in a Mirrleesian economy augmented to include endogenous technology development and adoption choices by firms. First, I identify conditions under which any progressive...

Transformation to post-industrial or knowledge-based economies causes changes in the structure of labour markets with growing demand on highly-qualified workforce. In XXI century human capital has become one of the most important production factors determining competitiveness and innovativeness...

Empirical research on agglomeration and regional economic growth puts high emphasis on the impact of specialization, diversity, and competition on regional employment dynamics (Glaeser et al. 1992, Henderson et al. 1995, Blien et al. 2006, Fuchs 2009). However, Beugelsdijk (2006) and Raspe/van...

We propose a theoretical framework to analyze the offshoring and reshoring decisions of firms in the age of automation. Our theory suggests that increasing productivity in automation leads to a relocation of previously offshored production back to the home economy but without improving...

Multinational firms transfer to their foreign affiliates superior technology, leading to higher productivity of their workers and therefore to higher wages, or so the often cited rent-sharing theory of multinational firms explains. But studies have shown that oftentimes, this results not from...

In most industrialized countries, employment has grown predominately in jobs at the upper and lower tails of the wage distribution, while employment in the middle part of the distribution has stagnated or declined. This process of job polarization is well documented for a number of countries. We...