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We argue that rising supply of experience not only reduces experienced workers' relative wages but also their relative labor market participation. From a theoretical model we derive predictions which we quasi-experimentally investigate, using variation across U.S. local labor markets (LLMs) over...
Persistent link: https://www.econbiz.de/10011989983
between employed skilled and unskilled labour. However, unskilled unemployment and labour income inequality within the group … workers. However, unemployment for skilled workers rises and skilled wages and labour income fall in the short-run. We finally …
Persistent link: https://www.econbiz.de/10011617479
Composition bias in aggregate wages is often a scapegoat for the apparent unresponsiveness of wages over the cycle. Since Bils (1985) and in particular Solon et al. (1994), who find that that real wages are highly pro-cyclical a general consensus has emerged that the observed 'mild' cyclicality...
Persistent link: https://www.econbiz.de/10009311989
equilibrium unemployment in Britain and the United States during the 1990s. We investigate whether perceptions of job insecurity … contribute to lowering wages. First, we examine the validity of subjective questions about unemployment expectations, using … longitudinal data. We find that workers' fears of unemployment are increased by their previous unemployment experience and by other …
Persistent link: https://www.econbiz.de/10001646567
This paper examines whether subjective expectations of unemployment are reliable indicators of the probability of … becoming unemployed, and investigates their association with wage growth. We find that workers’ fears of unemployment are … increased by their previous unemployment experience and by the unemployment experiences of a close friend, and are associated …
Persistent link: https://www.econbiz.de/10003784859