policies and higher wages than the periphery without inducing a relocation of firms. The scope to have higher wage is …

Globalization threatens "good jobs at good wages", according to overwhelming public sentiment. Yet professional … develop a model in which monopolistically competitive firms pay efficiency wages, and these firms differ in both their … wages for identical workers - good jobs and bad jobs - as well as equilibrium unemployment. Wage heterogeneity combines with …

, firms with more leverage should pay higher wages. …