As technological advances accelerate and labour demands shift, the ability of workers to reallocate across occupations … will be crucial for shaping labour market dynamics, inequality, and effective policy design. In this paper, we develop a … tractable equilibrium model of the labour market that incorporates heterogeneous labour supply elasticities to different …

As technological advances accelerate and labour demands shift, the ability of workers to reallocate across occupations … will be crucial for shaping labour market dynamics, inequality, and effective policy design. In this paper, we develop a … tractable equilibrium model of the labour market that incorporates heterogeneous labour supply elasticities to different …

in firm's real sales. We disentangle the effect on wage components (base wage and wage cushion) and labour inputs …