In this paper we develop a model of a vertically differentiated industry where the production of higher quality goods needs a higher fraction of specialized labour. In the first stage, firms choose the quality of their products, in the second, both good prices and skilled workers’ wages are...

When the production of high quality goods needs the employment of qualified labour, firms’ decisions concerning quality are affected by the extent to which skills are abundant. By means of a comparison between monopoly and perfect competition, we show how market power in such a context may...

[fre] Qualification de travailleurs et sélection de produits. . La production d'un bien de qualité supérieure requiert l'utilisation de travailleurs spécialement qualifiés à cette fin. Quand les firmes doivent choisir la qualité des biens qu' elles se proposent de produire et de vendre,...