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We introduce an efficiency wage mechanism into an innovation-driven growth model. Due to asymmetric information problems the labour market is segmented and homogeneous workers may be employed either in the non-competitive intermediate sector or in the competitive research sector. We analyse the...
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unemployment, wage inequality and growth. We find that the lower the product market competition in the intermediate sector, the … and inequality are negatively correlated whereas growth and unemployment are positively correlated. The last two results …
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This paper has developed a three-sector general equilibrium framework that explains unemployment of both skilled and … unskilled labour. Unemployment of unskilled labour is of the Harris-Todaro (1970) type while unemployment of skilled labour is …-unskilled wage inequality and the extent of unemployment of both types of labour crucially hinge on the properties implied by the …
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We investigate the importance of employer preferences in explaining Sticky Floors, the pattern that women are, compared to men, less likely to start to climb the job ladder. To this end we perform a randomised field experiment in the Belgian labour market and test whether hiring discrimination...
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