This paper seeks to explain the greater hours worked by Americans compared to Germans in terms of forward-looking labor supply responses to differences in earnings inequality between the countries. We argue that workers choose current hours of work to gain promotions and advance in the...

Using establishment-level data from a variety of sources, this study documents and analyzes the consistent rise in interindustry wage dispersion in the United States between 1970 and 1987. The authors attribute about 60% of the rise in this measure of wage dispersion to competitive market...

This paper examines the flexibility of wages across industries inthe U.S. and seeks to determine the potential impact which changes in the industrial wage structure may have for employment. With regard to the flexibility of wages across industries, we find that the U.S., alone among the major...