Abstract The relationship between inequality and labor supply has gained an increasing amount of attention in recent years. This is due, in no small part, to the rise in both work hours and inequality overtime within the U.S. and relative to other developed countries. This paper investigates the possibility of a causal relationship running from inequality to labor supply. After controlling for ...

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"The seven-fold increase, since 1920, in the labor force participation rate of married women [in the United States] was not accompanied by a substantial increase in average work experience among employed married women. Two data sets giving life-cycle labor-force histories for cohorts of women born from the 1880s to 1910s indicate considerable (unconditional) heterogeneity in labor-force partic...

This paper explains the narrowing of gender gaps in wages and market hours in recent decades by the growth of the service economy. We propose a model with three sectors: goods, services and home production. Women have a comparative advantage in the production of services in the market and at home. The growth of the services sector, in turn driven by structural transformation and marketization o...

Recent influential empirical work has emphasized the negative impact immigrants have on the wages of U.S.-born workers, arguing that immigration harms less educated American workers in particular and all U.S.-born workers in general. Because U.S. and foreign born workers belong to different skill groups that are imperfectly substitutable, one needs to articulate a production function that aggre...

This article examines the intertwining relationship between informality and education-occupation mismatch (EOM) consequent impact on workers’ wages. In particular, we discuss two issues — first, relative importance of EOM in determining wages; second, relevance for formal informal workers. The analysis reveals that although both are significant determinants wages, former is more crucial a devel...

We propose a novel, risk-based transmission mechanism for the effects of currency manipulation: policies that systematically induce a country’s currency to appreciate in bad times lower its risk premium in international markets and, as a result, lower the country’s risk-free interest rate and increase domestic capital accumulation and wages. Currency manipulations by large countries also have e...

The North American experience with international migration stands in unique contrast to much of the rest of the world. This paper uses microdata drawn from the national censuses of Canada, the United States, and Mexico, and applies the same methodological framework to these data to examine the impact of international migration on the labor market. We find a numerically comparable and statistica...

The observed gap in average wages between black men and white men inadequately reflects the relative economic standing of blacks, who suffer from a high rate of joblessness. The authors estimate the black-white gap in hourly wages from 1980 to 1999 adjusting for the sample selection effect of labor inactivity. Among working-age men in 1999, accounting for labor inactivity—including prison and j...