This paper uses evidence on employment, labor force, and wage differentials by education from OECD countries to investigate the characteristics and the consequences of a skill-biased shift in the structure of labor demand and supply. The empirical analysis shows that there has been some increase...

Most models of wage determination are static. This paper analyzes a simple dynamic model of collective bargaining and argues that this provides insights into the determinants of wage pressure that a static model cannot provide. In particular, it is shown how the length of labor contracts and the...

The UK Equal Pay Act of 1970 resulted in a large rise in the relative earnings of women in the early 1970s. As this change (unlike most wage changes) was largely exogenous to employers, one can think of this episode as an experiment for testing different theories of the labour market. Hence,...