Skill-Biased Technical Change is one of the most prominent explanations for the rise in wage inequality in the United States over the last decades. However, the explanation is challenged for several reasons. In this paper, I propose an alternative type of technical change, where new technologies...

In the present paper, I integrate frictional labor markets with on-the-job search into an otherwise standard heterogeneous firm model of intra-industry trade. Most importantly, I show that the returns to workers' inter-firm mobility are higher in a trade equilibrium than in autarky. Intuitively,...

I document the comovement of the skill premium with the differential employer size wage premium between high- and low-skill workers in U.S. manufacturing during the postwar era. For the baseline specification, i.e., establishments with at least 500 employees categorized as large employers and...

For the USA in 1987–2017, I document, at business cycle frequencies, that the employer-size wage premium of high-skill workers tends to be high (low) in times of low (high) unemployment relative to that of low-skill workers. The differential size wage premium between high-skill and low-skill...