Despite widespread recognition that the aggregate labour market is composed of a number of heterogeneous submarkets, there is little guidance on how to appropriately delineate such submarkets when conducting economic research. This paper contributes to a small but growing body of work addressing...

"In this paper we develop a theory of how factors interact at the plant level. The theory has implications for (1) the micro foundations for capital-skill complementarity, (2) the relationship between factor allocation and plant size, and (3) the effects of trade and growth on the skill premium....