determined wages. The novelty is to incorporate investment and capital decisions by firms. The subgame-perfect Nash equilibrium … and its comparative statics for wages, capital stock and employment are characterized in various cases. The model is then … describing the determination of capital stock, wages and hours of work performs reasonably well; there are no obvious signs of …

1990, we find that at the urban level richer diversity is systematically associated with higher average nominal wages for … the positive correlation between wages and diversity survives a battery of robustness checks, it seems to be larger once … wages. Comparing real and nominal wages across cities, we interpret these results as evidence that diversity enhances …