Increased international economic integration and skill-biased technological change are often regarded as the main drivers of the rising inequality in wages and employment witnessed in industrialized countries in recent decades as they are believed to emphasize differences between individuals in...

Labour productivity and wages are two major determinants of the economic activity and their connection is a constant concern for the economists, as well as for employers and policy-makers. This paper is aiming to measure to which extent is the variation of productivity consistent with the...

Growing diffusion of temporary agency work, in conjunction with the growing importance of human capital management, leads to the question who invests in the human capital of temporary agency workers. Therefore, we investigate the parties’ incentives to invest and review the small number of...

To evaluate the prevalence in Eastern Europe of a little discussed illegitimate wage practice in which employers pay their formal employees both a declared wage and an undeclared ‘envelope wage’, an extensive survey involving 10,671 face-to-face interviews in eleven post-socialist societies...

Using the fixed e¤ects estimator and the dynamic panel data system-GMM estimator, on a sample of 75 banks, covering the period 1988-2005, this paper estimates how wages in the Portuguese banking sector depend on the employers ability to pay. The results indicate that wages are strongly...

This paper contributes to the search theory of unemployment by endogenously generating matching functions for skilled and unskilled workers from a wage-posting game. The model is capable of producing a positive skill premium and a positive wage differential among homogeneous unskilled workers....

This paper presents a dynamic general equilibrium model of R&D-based trade between two structurally identical countries in which both innovation and skill acquisition rates are endogenously determined. Trade liberalization increases R&D investment and the rate of technological change. It also...

Recently, a number of authors have argued that the standard search model cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies, given shocks of a plausible magnitude. We propose a new calibration strategy of the standard model that uses data on the...

This paper studies the labor supply contributions to individual and family earnings inequality during the period of rising wage inequality in the early 1980's. Working couples have positively correlated labor market outcomes, which are almost entirely attributable to permanent factors. An...