We assess the differences in downward nominal and real wage rigidity between natives and immigrants in Portugal, using a matched employer-employee database and the International Wage Flexibility Project (IWFP) methodology. This methodology estimates a notional or counterfactual distribution that would prevail under wage flexibility and compares it to the empirical wage distribution. The estimat...

Software represents a major and fast-growing share of firms’ capital investment, impacting demand for labor what workers do on their jobs. Using U.S. Census Bureau panel data that link firms workers, this paper estimates the effect firm software earnings by age group. We extend AKM framework to include job-spell fixed effects account potential correlation between worker–firm match employee age,...

I examine worker effort as a potential margin of adjustment to minimum wage hike using unique data on piece rate workers who perform homogenous task and whose individual output is rigorously recorded. By employing difference-in-differences strategy that exploits the increase in Florida’s from $6.79 $7.21 January 1, 2009, location pre-2009 productivity distribution, provide evidence consistent w...

This paper provides empirical assessments of the two leading explanations of measured interindustry wage differentials: (1) true wage differentials exist across industries, and (2) the measured differentials simply reflect unmeasured differences in workers' productive abilities. First, we summarize the existing evidence on the unmeasured-ability explanation, which is based on firstdifferenced r...

â â â â  â  abstract â  most debates about the role of tariff cuts on the level of employment and rate of wages in labor market have come out of well-known hecscher – ohlin and stopler – samuelson (hos) theorems. considering the fact that we have divided the workforce into skilled and unskilled labors the present paper assesses the impacts of tariff cuts on labor market indicators in iran. ...

In this paper we show how time-varying unemployment benefits can generate equilibrium wage dispersion in an economy in which identical firms post wages and homogeneous risk-averse workers search for acceptable offers. We model a two-tier unemployment benefit system that is similar to real-world unemployment insurance programs. We assume that the unemployed initially receive benefits at rate b. ...

On the Optimality of a Minimum Wage: New Insights from Optimal Tax Theory We build a theoretical model to study whether a minimum wage can be welfare-improving if it is implemented in conjunction with an optimized nonlinear income tax. We consider this issue in a framework where search frictions on the labor market generate unemployment. Workers differ in productivity. The government does not o...

We use a panel of more than 100 countries for the period 1980 to 2002 to analyse the relationship between inward foreign direct investment (FDI) and wage inequality. We particularly check whether this relationship is non-linear, in line with a theoretical discussion. We find that the effect of FDI differs according to the level of development: we depict two different patterns, one for OECD (dev...