This paper provides a theoretical framework to analyze workers' incentives under different ownership. It shows that the workers' effort and expected income are higher and the monitoring intensity is lower in the employee-owned firm than in the capitalist firm. Unlike in previous models, the...

Previous studies of trends in inequality have ignored changes in the distribution of home production. This paper asks whether including the value of home production affects the trend in inequality of families. During the 1980s household money income grew at a slow rate but inequality increased....

Nominal wage stickiness is an important component of recent medium-scale structural macroeconomic models, but to date there has been little microeconomic evidence supporting the as- sumption of sluggish nominal wage adjustment. We present evidence on the frequency of nominal wage adjustment...