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knowledge sector is bounded, as productivity increases, the economy moves from a "Solovian zone" where wages increase with … bliss point can only be made better-off by an increase in diversity. If wages are set by monopoly unions rather than set … employment in the material goods sector. International trade may reduce wages in poor countries and increase them in rich …
Persistent link: https://www.econbiz.de/10011401020
rationalize this by assuming that diosyncratic non-pecuniary conditions interact with money wages in workers' decisions to work …
Persistent link: https://www.econbiz.de/10008810540
The US labour market has experienced a remarkable polarization in the 1980s and 1990s. Moreover, recent empirical work has documented a sharp increase in the wealth to income ratio in that period. Contemporary to these inequality trends, the US faced a fast technological catch-up as European...
Persistent link: https://www.econbiz.de/10010417976
rationalize this by assuming that idiosyncratic non-pecuniary conditions interact with money wages in workers' decisions to work …
Persistent link: https://www.econbiz.de/10013139040
What explains cross-national variation in wage inequality? Research in comparative political economy stresses the importance of the welfare state and wage coordination in reducing not only disposable income inequality but also gross earnings inequality. However, the cross-national variation in...
Persistent link: https://www.econbiz.de/10012992707
Integrating Roy with Becker, this paper studies occupational choice and matching in the labor market. Our model generates occupation earnings distributions which are right skewed, have firm fixed effects, and large changes in aggregate earnings inequality without significant changes in within...
Persistent link: https://www.econbiz.de/10011613424
percent and 1 percent of the within-firm wage distribution rise substantially. Instead, the effect on average wages is small …
Persistent link: https://www.econbiz.de/10015050833
This paper incorporates assignment frictions and sector-specific training into the Roy model of occupational choice. Assignment frictions represent the extent of the market whereas differences in sector-specific training reflect worker specialization. This framework thus captures Adam Smith's...
Persistent link: https://www.econbiz.de/10013032900
For a large set of countries, we document how the labor earnings inequality varies with GDP per capita. As countries get richer, the mean-to-median ratio and the Gini coefficient decline. Yet, this decline masks divergent patterns: while inequality at the top of the earnings distribution falls,...
Persistent link: https://www.econbiz.de/10013170860
This paper studies the employment and wage effects of contract staggering, i.e., the staggered nature in which wages …, we estimate the causal effect of increases in base wages mandated by collective agreements signed right before the shock … rigidity much higher than that assumed in macroeconomic models including staggered wages. Instead, we show that firms were able …
Persistent link: https://www.econbiz.de/10013226738