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In this paper we study the endogenous determination of minimum wage employing a political-economic game-theoretic approach. A major objective of the paper is to clarify the crucial role of the strength of the workers' union and of political culture on the determination of the minimum wage. In...
Persistent link: https://www.econbiz.de/10005497998
labour productivity. We control for different regional and firm characteristics, and we instrument enforcement with the … it is likely to contribute to an improvement in productivity. …
Persistent link: https://www.econbiz.de/10005661940
This paper analyzes the contribution of the minimum wage to the well documented rise in earnings inequality in Mexico between the late 1980s and the early 2000s. We find that a substantial part of the growth in inequality, and essentially all the growth in inequality in the bottom end, is due to...
Persistent link: https://www.econbiz.de/10008527529
We explore the relationship between import protection and the household distribution of income. We first develop a general-equilibrium mapping from tariffs to household inequality measures. This also yields predictions for linkages between tariffs, development level, and observed household...
Persistent link: https://www.econbiz.de/10005656223
Using several unique data sets on wage agreements at both the firm- and the industry-levels in France, we examine the impact of typical European wage-setting institutions on the form and the degree of wage rigidity. We highlight different stylized facts concerning wage stickiness. First, in...
Persistent link: https://www.econbiz.de/10008554243
What happens when a previously uncovered labour market is regulated? We exploit the introduction of a minimum wage in South Africa and variation in the intensity of this law to identify increases in wages for domestic workers and find no statistically significant effects on the intensive or...
Persistent link: https://www.econbiz.de/10009365006
This paper provides a comprehensive survey of seven aspects of rising inequality that are usually discussed separately: changes in labor’s share of income; inequality at the bottom of the income distribution, including labor mobility; skill-biased technical change; inequality among high incomes;...
Persistent link: https://www.econbiz.de/10005123580
We analyze optimal taxation in an economy with monopsonistic labour markets. The individuals, whose only decisions are whether to work, or not, have heterogeneous productivities and opportunity costs of work. Given its preferences for redistribution, the government, which does not observe the...
Persistent link: https://www.econbiz.de/10005504333
This paper shows how misleading is the facile contrast of Europe following a path of high productivity growth, high … shocks may initially create a positive trade-off between productivity and unemployment, they set in motion a dynamic path of … contributions of this paper are to show how a productivity-unemployment trade-off might emerge and how it might subsequently …
Persistent link: https://www.econbiz.de/10005114412
The rapid wage increases observed in Eastern Germany over the past two years have important implications for the direction taken by structural change in this region. These implications are not solely negative, and remain controversial in the public debate. This paper discusses four aspects of a...
Persistent link: https://www.econbiz.de/10005791224