We consider a frictional labor market in which firms want to insure their senior employees against income fluctuations and, at the same time, want to recruit new employees to fill their vacant positions. Firms can commit to a wage schedule, i.e. a schedule that specifies the wage paid by the firm to its employees as function of their tenure and other observables. However, firms cannot commit to...

This paper discusses how an industrialized country could defend the living standard of its unskilled workers against the wage competition from immigrants. It shows that fixing social replacement incomes implies migration into unemployment. Defending wages with replacement incomes brings about first order efficiency losses that approximate the budget cost of the government. By contrast, wage sub...

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...

As a result of increasing competition, European financial intermediaries have had to place an increasing emphasis on reducing total costs. Although expenditure on wages represent a major element of these costs there is a dearth of studies analyzing wage levels in the sector. This paper examines reservation wage levels in the financial services sector by utilizing OLS and stochastic frontier met...

The search for wage data can be daunting. Data are available for different job characteristics, such as occupation, industry, or geographic area; by demographics of the wage earner, such as race, sex, education, or age; and in a variety of forms, such as hourly wages, annual salaries, total employer payrolls, gross pay, or net pay. Beyond these variations, users of wage data may ask how wage is...

A New Model of Wage Determination and Wage Inequality This paper proposes a new model of wage determination and wage inequality. In this model, wage-setters set workers’ wages; they do so either directly, as when individuals vote in a salary committee, or indirectly, as when political parties, via the myriad of social, economic, fiscal, and other policies, generate wages. The recommendations ma...

OBJECTIVE This paper aims to assess the affordability of a nutritious diet for households earning minimum wage in Nova Scotia (NS) from 2002 to 2012 using an economic simulation that includes food costing and secondary data. METHODS The cost of the National Nutritious Food Basket (NNFB) was assessed with a stratified, random sample of grocery stores in NS during six time periods: 2002, 2004/2...

We analyse the following question associated with flexible outsourcing under partly imperfect dual domestic labour markets, where skilled workers participate in a firm’s profit: First, how does the implementation of profit sharing influence flexible outsourcing and low-skilled wage and thus how does it affect employment? Second, how do the outsourcing costs affect the low-skilled wage? We show ...

Job and Wage Mobility in a Search Model with Non-Compliance (Exemptions) with the Minimum Wage How well does a simple search on-the-job model fit the eighteen years of job and wage mobility of high school graduates? To answer this question we are confronted from the data with a prevalent non-compliance and exemptions from the minimum wage. We incorporate this observation in a job search model w...