Results

CEP discussion paper

Labor market effects of global supply chain disruptions

We examine the labor market consequences of global supply chain disruptions. Specifically, we consider a temporary increase in international trade costs similar to the one observed during the COVID-19 pandemic and analyz...Read more...

Blog

Vox EU:

The evolution of gender in the labour market

Despite significant progress in closing the gender gap in earnings, work remains highly gendered, with women continuing to participate less in the workforce, work fewer hours, and face persistent wage disparities. This c...Read more...

Journal article

Journal of Monetary Economics:

Labor market effects of global supply chain disruptions

We examine the labor market consequences of global supply chain disruptions. Specifically, we consider a temporary increase in international trade costs similar to the one observed during the COVID-19 pandemic and analyz...Read more...

Journal article

Oxford Review of Economic Policy:

Ethnic minority and migrant pay gaps over the life-cycle

It is well-known that ethnic minority and migrant workers have lower average pay than the White UK-born workforce. However, we know much less about how these gaps vary over the life-cycle because of data limitations. We ...Read more...

Journal article

The Review of Economics and Statistics:

Reservation Wages and the Wage Flexibility Puzzle

Using micro data for the UK and Germany, we provide novel evidence on the cyclical properties of reservation wages and estimate that wages and reservation wages are characterised by moderate and very similar degrees of c...Read more...

Journal article

Journal of Economic Literature:

Temporary Employment in Markets with Frictions

Temporary employment has spiked in OECD countries over the last 40 years and is now a common feature of their labor market landscape. A large body of empirical literature examines the spread of temporary employment, but ...Read more...

Blog

Vox EU:

The effect of productivity growth on within-firm inequality

Wage inequality has increased dramatically in the US since the 1970s, largely driven by within-firm earnings inequality. This column uses combined data from three large micro datasets to study the drivers and implication...Read more...

CEP discussion paper

The wage of temporary agency workers

Using French administrative data, we estimate the wage gap distribution between in-house and temporary agency workers working in the same establishment and the same occupation. The average wage gap is about 3%, but the g...Read more...

CEP election analysis

Work, wages and inactivity

The recent aggregate performance of the UK labour market looks good. But aggregate performance often obscures important changes around averages. Inequality along several dimensions remains a persistent feature of the UK ...Read more...

CentrePiece article

The national minimum wage: 25 years on

It is now just over a quarter of a century since a national minimum wage was introduced in the UK. Once a source of controversy due to fears that it would lead to fewer jobs, the policy has instead proved to be highly su...Read more...

Blog

The Conversation:

How the national living wage helps the UK's poorest households: new research

The UK's national living wage has just been raised by 10% to £11.44 per hour. It is now payable for all workers aged 21 and over, where previously it was for those aged 23 and over. Introduced in 2016 as the flagship pol...Read more...

Blog

LSE British Politics and Policy:

The national minimum wage - 25 years on

This month marks 25 years since a national minimum wage was introduced in the UK. Once a controversial policy, due to fears that it would lead to fewer jobs, it has instead proven to be highly successful. The minimum wag...Read more...

Journal article

American Economic Journal: Applied Economics:

Measuring Absolute Income Mobility: Lessons from North America and Europe

We use linked parent-child administrative data for five countries in North America and Europe, as well as detailed survey data for two more, to investigate methodological challenges in the estimation of absolute income m...Read more...

CEP discussion paper

Global managers, local workers: Wage setting inside a multinational firm

How are wages set within a multinational firm? Combining cross-country data on wages and labor regulations with personnel records of a large multinational firm, I find that wage setting depends on the rank of the employe...Read more...

CEP discussion paper

Individual welfare analysis: A tale of consumption, time use and preference heterogeneity

How accurately does household income reflect the well-being of the individuals living within the household? Looking at household income does not take unequal consumption sharing within families, the value of time use (le...Read more...

Journal article

Journal of Economic Perspectives:

The Evolution of Work from Home

Full days worked at home account for 28 percent of paid workdays among Americans 20–64 years old, as of mid-2023. That's about four times the 2019 rate and ten times the rate in the mid-1990s. We first explain why the bi...Read more...

Journal article

Annual Review of Economics:

Labor Market Insurance Policies in the Twenty-First Century

The COVID-19 crisis was a stress test for unemployment insurance schemes as it involved a sudden and unexpected shutdown of a very large set of activities. This forced countries to introduce, often from scratch, income s...Read more...

CEP discussion paper

Spatial wage inequality in North America and Western Europe: changes between and within local labour markets 1975-2019

The rise of economic inequalities in advanced economies has been often linked with the growth of spatial inequalities within countries, yet there is limited comparative research that studies the relationship between nati...Read more...

CEP discussion paper

The shift to remote work lessens wage-growth pressure

The recent shift to remote work raised the amenity value of employment. As compensation adjusts to share the amenity-value gains with employers, wage-growth pressures moderate. We find empirical support for this mechanis...Read more...

CEP discussion paper

Responsible sourcing? Theory and evidence from Costa Rica

Multinational enterprises (MNEs) increasingly impose "Responsible Sourcing" (RS) standards on their suppliers worldwide, including requirements on worker compensation, benefits and working conditions. Are these policies ...Read more...

CEP discussion paper

Robot adoption, worker-firm sorting and wage inequality: evidence from administrative panel data

Leveraging the geographic dimension of a large administrative panel on employer-employee contracts, we study the impact of robot adoption on wage inequality through changes in worker-firm assortativity. Using recently de...Read more...

Journal article

Quantitative Economics:

Income dynamics in the United Kingdom and the impact of the Covid-19 recession

In this paper, we use an employer-based survey of earnings and hours to set out the key patterns in UK earnings dynamics from 1975 to 2020, with a particular focus on the most recent recession. We demonstrate that (log) ...Read more...

CEP discussion paper

Who's got the power? Wage determination and its resilience in the Great Recession

Whereas wage inequality has risen markedly in most OECD countries in recent decades, it has fallen in several Southern European economies. To shed light on this phenomenon, we embed sectoral bargaining, which is common i...Read more...

CEP discussion paper

The wage elasticity of recruitment

One of the factors affecting the market power of employers is the extent to which higher wages makes recruitment easier. There is very little research on this. This paper presents a methodology for estimating the wage el...Read more...

CEP discussion paper

Labor market insurance policies in the XXI century

The recovery from the Covid-19 crisis will force governments to accelerate transformation in their menu of labor market policy tools. The crisis was a stress test for unemployment insurance schemes as it involved a sudde...Read more...

CEP discussion paper

Firms and inequality when unemployment is high

How important are firms for wage inequality in developing countries where structural unemployment is high? Research focused on contexts close to full employment has suggested a substantial role of firms in labor market i...Read more...

CEP discussion paper

Company wage policy in a low-wage labor market

The question of how firms set wages for their employees has been of longstanding interest. In this paper, we investigate what models of wage determination are at play in a low-wage labor market. We exploit a sizable and ...Read more...

Journal article

Journal of Human Resources :

Workplace presenteeism, job substitutability and gender inequality

This paper explores how the parenthood wage penalty is partially explained by an increased within-couple gap in job uniqueness (i.e., the within-establishment substitutability of workers). Uniqueness is rewarded with hig...Read more...

Blog

Economics Observatory:

Minimum wages and living wages: what happens in times of inflation?

It is widely accepted that minimum wages are an effective way to help workers at the lower end of the income distribution without damaging their job opportunities. But while the UK's minimum wage has risen faster than th...Read more...

Blog

LSE Business Review:

Low pay and insecurity in the UK labour market

Minimum wage increases have driven down the incidence of low hourly pay, but there has been much less progress elsewhere for low earners. Low pay is widespread among the self-employed, who do not benefit from the minimum...Read more...

Journal article

Mothers in the Labor Market:

Temporal flexibility, breaks at work, and the motherhood wage gap

We analyze the relationship between temporal flexibility at work (i.e., the ability to vary or change the time of beginning or ending work) and the motherhood wage gap of working parents, in the US. To that end, we first...Read more...

Chapter

Temporal flexibility, breaks at work, and the motherhood wage gap

in Mothers in the labor market

We analyze the relationship between temporal flexibility at work (i.e., the ability to vary or change the time of beginning or ending work) and the motherhood wage gap of working parents, in the US. To that end, we first...Read more...

CVER Research Paper

Variation in Parenthood Wage Effect: A human capital approach

Using German Socio-Economic Panel (GSOEP) microdata this paper contributes new empirical evidence by examining the implications of motherhood and fatherhood for wages of a sample of women and men between 2005-2015. Makin...Read more...

Journal article

Journal of Human Resources:

The urban wage premium in imperfect labor markets

Using administrative data for West Germany, this paper investigates whether part of the urban wage premium stems from fierce competition in thick labour markets. We first establish that employers possess less wage-settin...Read more...

CEP Insights

Jobs and wages

Most working-age adults depend on earnings from jobs as their main source of income. Understanding the labour market has always been a central part of research at CEP and its predecessor the Centre for Labour Economics....Read more...

CentrePiece article

In brief... How Pelé changed Brazilian football

A ban on non-compete agreements in Brazilian football led to an increased lifetime income for players. But as research by Bernardo Guimaraes, João Paulo Pessoa and Vladimir Ponczek reveals, it was older players who gaine...Read more...

Blog

LSE Business Review:

What is the optimal minimum wage?

With reports from the European Commission, the UK Treasury advocating significant increases in minimum wage levels, Gabriel Ahlfeldt, Duncan Roth, and Tobias Seidel explore whether such ambitious minimum wage increases i...Read more...

CEP discussion paper

Optimal minimum wages

We develop a quantitative spatial model with heterogeneous firms and a monopsonistic labour market to derive minimum wages that maximize employment or welfare. Quantifying the model for German micro regions, we find that...Read more...

Blog

VoxEU:

The value of online gig economy platforms

The gig economy and online labour platforms often trade off increased flexibility for lower employment security. Christopher Stanton and Catherine Thomas show how traditional labour market regulations, such as minimum wa...Read more...

Journal article

Journal of Econometrics: Forthcoming

Union membership density and wages: the role of worker, firm, and job-title heterogeneity

We examine the association between union density and wages in Portugal where just 10 percent of all workers are union members but nine-tenths of them are covered by collective agreements. Using a unique dataset on worker...Read more...

CEP discussion paper

Non-compete agreements, wages and efficiency: theory and evidence from Brazilian football

We propose a model to study non-compete agreements and evaluate their quantitative effects. We explore an exogenous policy change that removed non-compete clauses in the market for Brazilian footballers, the Pele Act of ...Read more...

Journal article

Canadian Journal of Economics:

On the interpretation of diploma wage effects estimated by regression discontinuity designs

Several recent papers employ regression discontinuity (RD) designs to estimate the causal effect of a diploma or similar credentials on wages. I build a model of knowledge acquisition, test-taking and labour market caree...Read more...

Journal article

Journal of Economic Perspectives:

The elusive employment effect of the minimum wage

Vacant, previously-developed land in cities can generate negative externalities on surrounding areas, and is often the target of policies to promote re-development. This paper provides estimates of the price sensitivity ...Read more...

CEP discussion paper

Dream jobs

Understanding why certain jobs are ‘better’ than others and what implications they have for a worker’s career is clearly an important but still relatively unexplored question. We provide both a theoretical framework and ...Read more...

Journal article

Journal of Economic Perspectives:

Place-based policies and spatial disparities across European cities

Spatial disparities in income and worklessness across areas of the European Union are profound and persistent. Concerns about these disparities and the appropriate policy response are longstanding. Two trends have re-ene...Read more...

CEP discussion paper

Automation, globalization and vanishing jobs: a labor market sorting view

We show, theoretically and empirically, that the effects of technological change associated with automation and offshoring on the labor market can substantially deviate from standard neoclassical conclusions when search ...Read more...

CEP discussion paper

The innovation premium to soft skills in low-skilled occupations

Matched employee-employer data from the UK are used to analyze the wage premium to working in an innovative firm. We find that firms that are more R&D intensive pay higher wages on average, and this is particularly true ...Read more...

Journal article

The Journal of Human Resources:

Speech and Wages

Although language has been widely studied, relatively little is known about how a worker's speech, in his/her native tongue, is related to wages, or what explains the observed relationship. To address these questions, I ...Read more...

CentrePiece article

Trade and deskilling: how the post-referendum sterling depreciation hurt workers

The unexpected result of the Brexit referendum, working through the rapid depreciation of sterling, had a sizable negative impact on UK workers. New CEP work by Rui Costa, Swati Dhingra and Stephen Machin shows that the ...Read more...

Journal article

IZA Journal of Labor Economics:

Reallocation and the Role of Firm Composition Effects on Aggregate Wage Dynamics

Aggregate wages display little cyclicality compared to what a standard model would predict. Wage rigidities are an obvious candidate, but the existing literature has emphasized the need to take into account the growing i...Read more...

CEP discussion paper

The urban wage premium in imperfect labour markets

Using administrative data for West Germany, this paper investigates whether part of the urban wage premium stems from fierce competition in thick labour markets. We first establish that employers possess less wage-settin...Read more...

Journal article

The Quarterly Journal of Economics:

Firming up inequality

We use a massive,matched employer-employee database for the United States to analyze the contribution of firms to the rise in earnings inequality from 1978 to 2013. We find that one-third of the rise in the variance of (...Read more...

Journal article

Economics Letters:

The regional effects of Germany's national minimum wage

We show that the minimum wage introduced in Germany in 2015 led to spatial wage convergence, in particular in the left tail of the distribution, without reducing relative employment in low-wage regions within the first t...Read more...

Journal article

Journal of the European Economic Association:

Firm dynamics and residual inequality in open economies

Wage inequality between similar workers has been on the rise in many rich countries. Recent empirical research suggests that heterogeneity in firm characteristics is crucial to understand wage dispersion. Lower trade cos...Read more...

Journal article

Economica:

Wage Flexibility and Employment Fluctuations: Evidence from the Housing Sector

Many economists suspect that downward nominal wage rigidities in ongoing labour contracts are an important source of employment fluctuations over the business cycle, but there is little direct empirical evidence on this ...Read more...

CentrePiece article

Care homes: effects of the National Living Wage

The National Living Wage, which was introduced in 2016, has substantially raised wages at the bottom of the hourly wage distribution in care homes in England, a sector that employs a large number of low-paid workers. Acc...Read more...

Journal article

AEA Papers and Proceedings:

Gender Norms and Relative Working Hours: Why Do Women Suffer More Than Men from Working Longer Hours Than Their Partners?

Constraints that prevent women from working longer hours are argued to be important drivers of the gender wage gap in the United States. We provide evidence that in couples where the wife's working hours exceed the husba...Read more...

CEP discussion paper

Specialization matters in the firm size-wage gap

This study applies the O-ring theory to explain the firm-size wage premium. It focuses on the joint role of the division of labor and employee characteristics. Including the firm heterogeneity of occupations in a standar...Read more...

CEP discussion paper

Changing the structure of minimum wages: firm adjustment and wage spillovers

This paper analyses the economic impact of a significant change to the structure of a minimum wage setting policy. The context is the United Kingdom where government mandated an unexpected change in the structure of mini...Read more...

Journal article

Journal of International Economics:

Working across time zones: Exporters and the gender wage gap

This study argues that there is a systematic difference in the gender wage gap (GWG) between exporting firms and non-exporters. Exporters may require greater commitment from their employees, such as working particular ho...Read more...

CEP discussion paper

The effect of minimum wages on low-wage jobs: evidence from the United States using a bunching estimator

We propose a novel method that infers the employment effect of a minimum wage increase by comparing the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs paying below it. Using st...Read more...

Journal article

Journal of Labor Economics:

Minimum wages and firm value

How does the value of a firm change in response to a minimum wage hike? The evidence we have to date is not well-suited to answer this question, principally because events that have been studied are not completely unknow...Read more...

Journal article

Economics of Education Review:

A question of degree: The effects of degree class on labor market outcomes

How does performance at university affect labor market outcomes? Employing a regression discontinuity design, we show that university degree class causally affects graduates’ industry, wages, and earnings. Our sample c...Read more...

CVER Research Paper

The Payoff to Vocational Qualifications: Reconciling Estimates from Survey and Administrative Data

This paper takes as a starting point the wage/earnings differentials associated with vocational qualifications that have been estimated in the literature. Two distinct parts of that literature are identified, using surve...Read more...

Blog

ESRC blog:

How English care homes have coped with the National Living Wage

Giulia Giupponi is an ESRC-funded PhD student at the London School of Economics and a research assistant at the Centre for Economic Performance. Stephen Machin is Professor of Economics at the London School of Economics ...Read more...

Journal article

Economica:

Gender Inequality and Economic Development: Fertility, Education and Norms

We document the evolution of gender inequality in labour market outcomes—earnings, labour supply and wage rates—over the path of economic development, and present evidence on the potential reasons for this evolution. To ...Read more...

Journal article

The Review of Economic Studies:

Trade and inequality: From theory to estimation

While neoclassical theory emphasizes the impact of trade on wage inequality between occupations and sectors, more recent theories of firm heterogeneity point to the impact of trade on wage dispersion within occupations a...Read more...

Journal article

IZA Journal of Labor Policy:

Wage rigidities and business cycle fluctuations: A linked employer-employee analysis

This paper analyses wage dynamics in Italy in the last 25 years with a special focus on the recent recession. Despite the rather rigid Italian institutional setting, using linked employer-employee data we find that wage ...Read more...

CEP discussion paper

Wage flexibility and employment fluctuations: evidence from the housing sector

Many economists suspect that downward nominal wage rigidities in ongoing labor contracts are an important source of employment fluctuations over the business cycle but there is little direct empirical evidence on this co...Read more...

CEP discussion paper

The elusive employment effect of the minimum wage

There is a huge body of empirical research on the employment effect of the minimum wage that has failed to clearly demonstrate the negative effect that so many economists strongly believe to find. This paper reviews the ...Read more...

Journal article

Journal of Economic Theory:

Assignment reversals: Trade, skill allocation and wage inequality

The allocation of skilled labor across industries shapes inter-industry wage differences and wage inequality. This paper shows the ranking of industries by workforce skill differs between developed and developing countri...Read more...

Journal article

Oxford Economic Papers:

Graduate returns, degree class premia and higher education expansion in the UK

We investigate the extent to which graduate returns vary according to the class of degree achieved by UK university students, and examine changes over time in estimated degree class premia. Using a variety of complementa...Read more...

Journal article

Economica:

The Rising Postgraduate Wage Premium

Despite post-college degree holders now making up nearly 15% of the US adult workforce, studies of their labour market performance remain sparse. This is surprising given that they are the most educated group in the labo...Read more...

CEP discussion paper

Reservation wages and the wage flexibility puzzle

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 model – even if wa...Read more...

CEP real wages update

Slowing UK Wage Growth

We have previously examined the path of nominal and real wages in the UK (Blanchflower and Machin, 2014a, 2014b, 2014c). In that work, we expressed the view that in recent years there has been sufficient slack in the lab...Read more...

Journal article

American Economic Journal: Applied Economics:

The contribution of the minimum wage to US wage inequality over three decades: A reassessment

We reassess the effect of minimum wages on US earnings inequality using additional decades of data and an IV strategy that addresses potential biases in prior work. We find that the minimum wage reduces inequality in the...Read more...

Journal article

The Economic Journal:

Income and Population Growth

Do populations grow as countries become richer? In this study we estimate the effects on population growth of shocks to national income that are plausibly exogenous and unlikely to be driven by technological change. For ...Read more...

CEP discussion paper

Globalization: a woman's best friend? Exporters and the gender wage gap

While the impact of globalization on income inequality has received a lot of attention, little is known about its effect on the gender wage gap (GWG). This study argues that there is a systematic difference in the GWG be...Read more...

CEP discussion paper

Has performance pay increased wage inequality in Britain?

Using data from the British Household Panel Survey (BHPS) we show performance pay (PP) increased earnings dispersion among men and women, and to a lesser extent among full-time working women, in the decade of economic gr...Read more...

CEP election analysis

Real Wages and Living Standards

Real wages and living standards have taken a hard hit in the UK in the recent past. Real wages of the typical (median) UK worker have fallen by almost 10% since 2008 and median family incomes have significantly fallen fo...Read more...

CEP discussion paper

Rise of the machines: the effects of labor-saving innovations on jobs and wages

How do firms respond to technological advances that facilitate the automation of tasks? Which tasks will they automate, and what types of worker will be replaced as a result? We present a model that distinguishes between...Read more...

CEP occasional paper

Knowledge-based hierarchies: using organizations to understand the economy

We argue that incorporating the decision of how to organize the acquisition, use, and communication of knowledge into economic models is essential to understand a wide variety of economic phenomena. We survey the literat...Read more...

CEP discussion paper

The volatility of earnings: evidence from high-frequency firm-level data

The first contribution of this paper is to use UK monthly firm-level data to show that there is a large amount of transitory volatility in firm-level average earnings from month to month. We conclude that this cannot all...Read more...

CentrePiece article

Falling real wages

The researchers note that there have been historically unprecedented falls in UK real wages since the start of the Great Recession. What’s more, the long US experience of stagnant real wages (median real weekly earnings ...Read more...

CentrePiece article

Minimum wages: the economics and the politics

The UK’s national minimum wage has tackled extreme low pay – but the wider problem of low pay remains as serious as ever. That is one of the conclusions of Professor Alan Manning in a discussion of the growing popularity...Read more...

Journal article

Review of Economics and Statistics:

Has ICT polarized skill demand? Evidence from eleven countries over twenty-five years

We test the hypothesis that information and communication technologies (ICT) polarize labor markets by increasing demand for the highly educated at the expense of the middle educated, with little effect on low-educated w...Read more...

Journal article

The Economic Journal:

Bankers and their bonuses

We analyse the role of financial sector workers in the huge rise of the share of earnings going to those at the very top of the pay distribution in the UK. Rising bankers' bonuses accounted for two-thirds of the increase...Read more...

CentrePiece article

Has job polarisation squeezed the American middle class?

Job polarisation has had strong effects on US workers’ relative wages, according to research by Michael Boehm. His study examines whether the decline in manufacturing and clerical jobs has been responsible for the laggin...Read more...

CEP discussion paper

A question of degree: The effects of degree class on labor market outcomes

How does measured performance at university affect labor market outcomes? We show that degree class - a coarse measure of student performance used in the UK - causally affects graduates' industry and hence expected wages...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Urban Wage Growth Premium: Sorting or Learning?

This paper is concerned with the urban wage premium and addresses two central issues about which the field has not yet reached a consensus. First, the extent to which sorting of high ability individuals into urban areas ...Read more...

CEP discussion paper

Has job polarization squeezed the middle class? Evidence from the allocation of talents

Over the last two decades, earnings in the United States increased at the top and at the bottom of the wage distribution but not in the middle - the intensely debated middle class squeeze. At the same time there was a su...Read more...

CEP occasional paper

Bankers and their bonuses

The pay of financial sector workers (“bankers”) is a focus of public concern especially since the onset of the financial crisis. We document the remarkable rise in the share of aggregate pay going to those at the very to...Read more...

CEP occasional paper

Extreme wage inequality: pay at the very top

We provide new evidence on the growth in pay at the very top of the wage distribution in the UK. Sectoral decompositions show that workers in the financial sector have accounted for the majority of the gains at the top o...Read more...

CEP discussion paper

Minimum Wages and Wage Inequality: Some Theory and an Application to the UK

Research suggests that, at the levels set in countries like the US and the UK, minimum wages have little effect on employment but do have impacts on wage inequality. However we lack models that can explain these facts – ...Read more...

CEP discussion paper

The Careers of Immigrants

I use a unique linked employer employee panel covering all wage earners in the private sector in Portugal to shed new light on the careers of immigrants. During the first ten years in the country immigrants close one thi...Read more...

CEP discussion paper

A Cautionary Note on Using Industry Affiliation to Predict Income

Many literatures investigate the causal impact of income on economic outcomes, for example in the context of intergenerational transmission or well-being and health. Some studies have proposed to use employer wage differ...Read more...

CEP discussion paper

Steady-State Equilibrium in a Model of Short-Term Wage-Posting

This paper takes the canonical Burdett-Mortensen model of wage- posting and relaxes the assumption that wages are set once-for-all, instead assuming they can only be committed one period at a time. It derives a closed-fo...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Trade Liberalisation Does Not Always Raise Wage Premia: Evidence from Ugandan Districts

The process of economic integration over the past two decades has been accompanied by an expanding income wedge between skilled and unskilled workers in many developing countries. This was also the case for Ugandan wage ...Read more...

CEP discussion paper

Selection into Trade and Wage Inequality

This paper analyzes the impact of trade integration on wage inequality when there is heterogeneity across both workers and firms. By incorporating labor assignment into the heterogeneous firms literature I develop a mode...Read more...

CEP discussion paper

Trade and Inequality: From Theory to Estimation

While neoclassical theory emphasizes the impact of trade on wage inequality between occupations and sectors, more recent theories of firm heterogeneity point to the impact of trade on wage dispersion within occupations a...Read more...