worker satisfaction. Theoretically, wages of others may affect workers' utility for two main reasons: Workers may derive well …-being from their social status (comparison hypothesis) and/or they may use others wages to help predict their own future wage … model using British employer-employee data. Incomplete information about others wages is assumed. The author finds that the …

Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional … employees (entrants) receive their reservation wages. The reason given is that an increase in insider wages gives rise to a … countervailing fall in reservation wages, leaving the present value of wage costs unchanged. Our analysis contradicts this …

changes in production costs, in particular wages, affect output and thus labor input in the two regions. The paper proves …

prices and productivity levels is investigated analytically and graphically. The main results are: Higher production costs in …

offshoring mainly through changes in relative wages rather than changes in relative employment. This runs counter to the …

ones who earn low wages). Second, by raising the payoff of low-skilled work relative to skilled work, low-wage subsidies …

The paper analyzes the influence of minimum wages on firms’ incentive to train their employees. We show that this … influence rests on two countervailing effects: minimum wages (i) augment wage compression and thereby raise firms’ incentives to … minimum wages give rise to skills inequality: a rise in the minimum wage leads to less training for low-ability workers and …