Large and persistent differences across industries in wages paid for given occupations have commonly been observed. Recently, the efficiency wage model (EWM) has been advanced as an explanation for these wage differentials. The shirking version of the EWM assumes a trade-off between...

A major cause of unemployment, distinct from inadequate aggregate demand and instability of workers, is the instability of jobs themselves. In an average year about one in every nine jobs disappear and one in every eight is newly created. This is based on an analysis of year to year employment...

Recent arguments that employment growth occurs disproportionately at small establishments are fundamentally misleading because they confuse regression to the mean with structural shifts in the size distribution of establishments and with an aging effect within cohorts. The net growth usually...