We study worker and firm behavior in an environment where worker effort could depend on co-workers' wages. Theoretically, we show that an increase in workers' 'concerns' with coworkers' wages should lead profit-maximizing firms to compress wages under quite general conditions. However, firms...

We study worker and firm behavior in an efficiency-wage environment where co-workers' wages may potentially influence a worker's effort. Theoretically, we show that an increase in workers' responsiveness to co-workers' wages should lead profit-maximizing firms to compress wages under quite...

Using Census and Current Population Survey data spanning 1959 through 1999, we assess the relative contributions of two factors to the decline in the gender wage gap: changes across cohorts in the relative slopes of men%u2019s and women%u2019s age-earnings profiles, versus changes in relative...