This paper addresses the problem of point identification in the presence of measurement error in discrete variables; in particular, it considers the case of having two “noisy” indicators of the same latent variable and without any prior information about the true value of the variable of...

The paper explains the low wages of the disabled in a monopsonistic framework. In the disabled market firms face different costs of adjustment ("disabled-friendly" firm vs. "disabled-unfriendly" firm), high or low, and offer wages according to these costs. Hence, there will be high- and low-paid...