The purpose of this study is to investigate the factors affecting the manufacturing industry wage among selected developing countries based on new economic geography theory. More specifically, we use a panel data model to study the spatial structure of wages in 136 countries for the period 1998-2007. The results indicate that this theory provides a good description of the spatial structure of w...

T his study investigated the effect of international labor migration on Iran’s economy using a neo-classical growth model with the assumption of labor heterogeneity within the framework of dynamic stochastic general equilibrium model. After solving the model, the obtained equations were linearized and different values were assigned to the parameters according to Iran’s economy inform...

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment rather than wages, at odds with the quantitative predictions of the canonical search and matching model. This paper provides an alternative perspective on the wage flexibility puzzle, explaining why the canonical model can only match the observed cyclicality of wages if the repla...

We extend the benchmark RBC model amending the technology for e ciency wage considerations. The disutility of e ort depends on current, alternative and past wages. Past wages are treated as the worker's past wages (personal norm case) or as the past wages of the society (social norm case). This last model reproduces the high variability of employment, the low variability of wages and the low wa...

The past two hundred years have seen a remarkable transformation in the standard of living of a substantial fraction of the world’s population. Since about 1800, real wages of ordinary workers in Western Europe and North America have risen steadily by roughly one to two percent per year. This has lead to a cumulative increase in real wages of a staggering 1500%. In sharp contrast, real wages of...

This paper estimates a simultaneous model of moderate and problem drinking, smoking, and wages using a random sample of employed Canadian men. The results indicate that sample selection into alcohol and tobacco use is not negligible. With all else in the system held constant, moderate and heavy drinking are both associated with considerably higher wages than abstention from drinking, whereas sm...

We study worker behavior in an efficiency-wage environment where co-workers’ wages can influence a worker’s effort. Theoretically, we show that an increase in workers’ responsiveness to co-workers’ wages should lead profit-maximizing firms to compress wages. Our laboratory experiments, on the other hand, show that --while workers’ effort choices are highly sensitive to their own wages-effort is...

Unemployment Insurance (UI) wage records allow a detailed look at the functioning of the labor market.1 Researchers used this database to examine statistical and economic relationships between job and worker flows. For example, using UI wage records for the State of Maryland, S. Burgess and others found that new hires are not limited to expanding firms; separations are not limited to shrinking ...