The U.S. minimum wage declined in real terms since the late 1970s. In the same time, the wage of the least skilled workers fell in real terms, while the wage of the highest skilled workers increased. To shed light on these issues, I use a simple model of routinization. High-ability workers,...

We present a model consistent with the stylized fact that "rigid Europe" has witnessed higher unemployment and a more compressed wage structure than "flexible America". A distinguishing feature of the present paper is that it endogenises the labour market regulations that account for this...