Politicians, the media, and the public express concern that immigrants depress wages by competing with native workers … countries have found no effect on wages, on average, and only modest effects on wage differentials between more and less … educated immigrant and native workers. Native workers' wages have been insulated by differences in skills, adjustments in local …

duality in higher education as well as heterogeneous ability of individuals can explain the differences in labor productivity …Over the last decades, productivity in the tradable sector rose substantially, while in the non-tradable sector, output … by their ability, and in consequence, human capital in both industries is different. The heterogeneity in human capital …

study how the earnings distribution changes with distortions that penalize high-productivity firms and frictions that reduce … much firms are willing to pay workers, how well high-skill workers are matched with high-productivity firms, and how much …

firm heterogeneity to wage inequality. Inspired by sorting theory, we infer firm productivity from estimating firm …-level production functions, taking into account that worker ability and firm productivity may interact at the match level. Using German …, driven by new matches between low-productivity firms and low-ability workers. At the top, sorting decreases, reflected in …