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Economists disagree about the factors driving the substantial increase in residual wage inequality in the U.S. over the past few decades. We identify and estimate a general model of log wage residuals that incorporates: (i) changing returns to unobserved skills, (ii) a changing distribution of...
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, Canada, and France. We argue that the same forces that led to falling real wages for less-skilled workers in the U ….S. affected similar workers in Canada and France. Consistent with the view that labor market institutions are more rigid in France … somewhat less in Canada, and did not fall at all in France. Contrary to expectations, however, we find little evidence that …
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We develop a theory of sorting across occupations based on looks and derive its implications for testing for the source of earnings differentials related to looks. These differentials are examined using the 1977 Quality of Employment, the 1971 Quality of American Life, and the 1981 Canadian...
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