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This paper reexamines the e ciency of participation with heterogeneous workers in a search-matching model with … bargained wages and free entry. As- suming that rms hire their best applicants, we state that participation is insu cient … receive the entire output. As a consequence, introducing a (small) minimum wage raises participation, job creation, and …
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This paper reexamines the issue of the division of the labor force between the two sub-markets (formal and informal) of a developing economy. The formal sector is represented by a matching model with vertically differentiated workers. Assuming that firms hire their best applicants, we state that...
Persistent link: https://www.econbiz.de/10009293462
We study the role of labor market mismatch in the adjustment to a trade liberalization that results in the offshoring of high-tech production. Our model features two-sided heterogeneity in the labor market: high- and low-skilled workers are matched in a frictional labor market with high- and...
Persistent link: https://www.econbiz.de/10010937979
This paper studies how minimum wages affect the wage distribution if firms face financial constraints. Using German employer-employee data and firm balance sheets, we document that the within-firm wage dispersion decreases more with higher minimum wages when firms are financially constrained. We...
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