The changing effects of wage disparity on team performance during the process of industry development are examined using data sourced from the Japanese professional football league. The results show that wage disparity leads to a reduction in team performance during the developing stage but does not influence performance during the developed stage. Unobserved fixed team effects and endogeneity ...

The existing macroeconometric evidence lends support to the wage Phillips curve by showing a negative relation between the rate of change in wages and the unemployment rate, conditional on lagged price inflation. Most theoretical models of wage setting, however, generate a “wage curve,” described by a negative relation between the level of the real wage and unemployment. Real wage dynamics have...

We study the 2011 Austrian pay transparency law, which requires firms above a size threshold to publish internal reports on gender gap. Using an event-study design, we show that policy had no discernible effects male and female wages, thus leaving wage gap unchanged. The are precisely estimated, rule out narrowed by more than 0.4 p.p.. Moreover, do not find evidence for compression within estab...

This paper examines the structure of wages in a very specific labor market: care assistants in residential homes for the elderly on England's "sunshine coast." This sector corresponds closely to economists' notion of what should be a competitive labor market, both because it has a large number of small firms undertaking a very homogeneous activity in a concentrated geographical area, and becaus...

Wage hikes affect production costs and hence are usually analysed as supply shocks. There is, however, a long-standing debate about demand effects of wage variations. In this paper, we bring together these two arguments in a Kaldorian model with group specific saving rates and a production technology that allows for redistribution between workers and entrepreneurs following a wage hike. We ther...

How does a redistribution of trade gains affect welfare when income inequality matters? To answer this question, we extend the [1] model to unionized labor markets and heterogeneous workers. As redistribution schemes, we consider unemployment benefits that are financed either by a wage tax, a payroll tax or a profit tax. Assuming that welfare declines in income inequality, we find that welfare ...

In this paper, we introduce the asymmetric information a la Kennan in the Hall-Milgrom framework so as to replicate the elasticity of the real wage with respect to labor productivity found by Hagedorn-Manovskii (0.5). We believe that the empirical real wage stickiness results from the rigidity of the two bounds of the bargaining set. The Hall-Milgrom model, by only making the lower bound less f...

The paper studies wage formation in a pairwise matching model with heterogeneous labor. Firms propose wage offers unilaterally but workers can opt to search for alternative contacts besides pairwise meetings. Due to this option, the Diamond Paradox does not emerge but workers earn a non-trivial share of the transferable rent. Since the search option is disproportionately valuable for high skill...