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This Paper studies the impact of wage growth on the evolution of employment in an intertemporal general-equilibrium model with endogenous productivity growth. For real wage growth above laissez-faire levels, we obtain steady-state equilibria in which productivity grows at the same rate as wages,...
Persistent link: https://www.econbiz.de/10005789120
lead to higher inequality across firms, increased segregation of labour markets and decreased within-firm inequality. This … workplace systems. Our results suggest that HPWOs increase both across and within firm inequality. We do not find evidence …
Persistent link: https://www.econbiz.de/10005504382
In this chapter we inspect economic mechanisms through which technological progress shapes the degree of inequality … among workers in the labour market. A key focus is on the rise of US wage inequality over the past 30 years. However, we … also pay attention to how Europe did not experience changes in wage inequality but instead saw a sharp increase in …
Persistent link: https://www.econbiz.de/10005504683
This Paper provides an interpretation for the recent rise in residual wage inequality which is consistent with the … this mechanism can account for 30% of the surge in residual inequality in the US economy (or for most of its transitory …
Persistent link: https://www.econbiz.de/10005504582
This Paper takes a new look at the long-run dynamics of inflation and unemployment in response to permanent changes in the growth rate of the money supply. We examine the Phillips curve from the perspective of what we call ‘frictional growth’, i.e. the interaction between money growth and...
Persistent link: https://www.econbiz.de/10005788925
In 1990 Colombia replaced its traditional system of severance payments with a new system of severance payments savings accounts (SPSAs). Although severance payments often are justified on the grounds that they provide insurance against earnings loss, they also increase costs for employers and...
Persistent link: https://www.econbiz.de/10005791811
Throughout the post-war era until 1995 labour productivity grew faster in Europe than in the United States. Since 1995, productivity growth in the EU-15 has slowed while that in the United States has accelerated. But Europe’s productivity growth slowdown was largely offset by faster growth in...
Persistent link: https://www.econbiz.de/10005124319
Why are some countries so much richer than others? Development Accounting is a first-pass attempt at organizing the answer around two proximate determinants: factors of production and efficiency. It answers the question ‘how much of the cross-country income variance can be attributed to...
Persistent link: https://www.econbiz.de/10005662006
This Paper studies a model where Information Technology, while typically increasing overall inequality, is likely to … with a lower knowledge intensity; their wages fall, which reduces inequality between them and the least skilled. Those who … skilled, which tends to increase inequality. The least skilled do not participate in this competition, as they are not …
Persistent link: https://www.econbiz.de/10005791349
We argue that inequality and rapid deunionization are related, and that skill-biased technical change has been an … important factor in deunionization as well as in the rise in inequality. Skill-biased technical change causes deunionization … support of unions. Our approach implies that although deunionization is not the underlying cause of the increase in inequality …
Persistent link: https://www.econbiz.de/10005791562