Labor Market Institutions, Wages, and Investment Labor market institutions, via their effect on the wage structure, affect the investment decisions of firms in labor markets with frictions. This observation helps explain rising wage inequality in the US, but a relatively stable wage structure in Europe in the 1980s. These different trends are the result of different investment decisions by firm...

To examine the impact of globalization on managerial compensation, we consider a matching model where a number of firms compete both in the product market and in the managerial market. We show that globalization, i.e. the simultaneous integration of product markets and managerial pools, leads to an increase in the heterogeneity of managerial salaries. Typically, while the most able managers obt...

This paper studies renegotiation in models with on-the-job search, with an application to minimum wages. My formulation nests earlier models in the literature as limit cases when the frequency of renegotiation goes to zero or infinity. The equilibrium wage distribution and the bargaining outcomes are unique. When there is a strong response of turnover to a wage increase, firms accept higher wag...

Labor Market Pooling, Outsourcing and Labor Contracts Economic regions, such as urban agglomerations, face external demand and price shocks that produce income risk. Workers in large and diversified agglomerations may benefit from reduced wage volatility, while firms may outsource the production of intermediate goods and realize benefits from Chamberlinian externalities. Firms may also protect ...

Correspondence: andrea.garnero@ oecd.org OECD, 2, rue André Pascal -, 75775 Paris Cedex 16, France CEB, Université libre de Bruxelles, Brussels, Belgium Full list of author information is available at the end of the article Abstract: This paper provides a comprehensive portrait of the level and compliance with sectoral minimum wages in Italy between 2008 and 2015. The results show that wage flo...

Are Workers in the Cultural Industries Paid Differently? Wage differentials between three sub-industries of the cultural industries and their respective main industry: The case of the Netherlands This paper aims to explore wage differentials between employees in three sub-industries of the cultural industries compared with the main (1-digit level) industry to which they belong. We use data from...

Wage Mobility: Do Institutions Make a Difference? A Replication Study Comparing Portugal and the UK This study compares wage mobility in Portugal and the UK, replicating the work by Dickens (2000) and progressing to discuss the impact of differences in the institutional framework, which is more regulated and centralized in Portugal, with minimum wages, employment protection, and collective barg...