We study a model of strategic persuasion based on the theory of cheap talk, in which a better-informed agent manipulates two decision-makers’ joint decision on alternative proposals. With the heterogeneity of two decision-makers’ value of the outside option, only the decision-maker with the...

In spite of the rapid growth in job polarization literature, different aspects of job polarization across industries have not yet been studied extensively. In this paper, we show that (1) the degree of job polarization is not the same across different industries and that (2) this observation is...

a class of economies where firms display coordination motives in presence of dispersed information and where the outcome of the coordination is traded in a competitive asset market ´a-la Grossman and Stiglitz (1980). We show that when more private information is injected in the coordination...

Hours volatility has changed non-monotonically across skill groups since the mid-1980s. The welfare cost of business cycles of mid-skilled workers became similar to that of high-skilled workers, while the relative welfare cost of low- to high-skilled workers remains very high.

A significant obstacle to studying business cycle properties of job polarization has been the presence of inconsistencies in aggregate employment data for different occupation groups. In order to overcome this problem, we construct aggregate hours series using the method of 'conversion factors',...

This paper explores the relationship between job polarization and interindustry wage differentials. Using the U.S. Census and EU KLEMS data, we find that the progress of job polarization between 1980 and 2009 was more evident in industries that initially paid a high wage premium to workers than...