This article describes an economy in which different types of workers form matches with different types of firms. Since at a given human capital level the expected wage will rise with the firm's technological level, the agents are going to compete for the most productive firms. On the other...

We analyze a theoretical model in which many heterogeneous agents invest in productive human capital as they compete for better college seats or employment opportunities. We derive theoretical predictions about how intensity of market competition and/or preferential treatment allocation policies...

I study a model where Information Technology, while typically increasing overall inequality, is likely to harm some people at intermediate and high levels of the distribution of income but to benefit people at the bottom. Within a given occupation it may harm some workers while benefitting...