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In recent decades most developed countries have experienced an increase in income inequality. In this paper, we use an equilibrium search framework to shed additional light on what is causing an income distribution to change. The major benefit of the model is that it can accommodate shocks to...
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, wages of both skill groups, and unemployment. In contrast to the canonical model with a fixed task allocation, low …-skilled workers may be harmed in terms of either lower wages or higher unemployment depending on the relative task …
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reallocation and changes in wage pressure, and examine how skillbiased technical change (SBTC) affects the task composition, wages …-skilled workers may be harmed in terms of either lower wages or higher unemployment depending on the relative task …
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In recent decades, most developed countries have experienced a simultaneous increase in income inequality and management compensation. In this paper, we study the relation between management compensation and firm-level income dynamics in a general equilibrium model. Empirical estimation, of the...
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