Labor Market Concentration, Earnings, and Inequality

Jan Schymik: Earnings Inequality and the Global Division of Labor: Evidence from the Executive Labor Market

Many industrialized economies have seen a rapid rise in top income inequality and in the globalization of production since the 1980s. In this paper I propose an open economy model of executive pay to study how offshoring affects the pay level and incentives of top earners. The model introduces a simple principal-agent problem into a heterogeneous firm talent assignment model and endogenizes pay...

Globalization, Inequality and Labor Market Policies

This paper addresses four questions. First, is globalization associated with more inequality in consumption or earnings? Second, is the labor market an important transmission mechanism? Third, can labor market policies reduce inequality? And fourth, would these policies have important side effects on efficiency? The answers are based on an analytical survey of the literature, including several ...

Technical Change , Inequality , and The Labor Market ∗

This essay discusses the effect of technical change on wage inequality. I argue that the behavior of wages and returns to schooling indicates that technical change has been skill-biased during the past sixty years. Furthermore, the recent increase in inequality is most likely due to an acceleration in skill bias. In contrast to twentiethcentury developments, much of thr technical change during ...

Immigration, Labor Market and Wage Inequality

Wage Inequality in a Frictional Labor Market

Wage inequality in the United States has grown substantially in the past two decades. Standard supply-demand analysis in the empirics of inequality (e.g. Katz and Murphy (1992)) indicates that we may attribute some of this trend to an outward shift in the demand for high skilled labor. In this paper we examine a simple static channel in which the wage premium for skill may grow increased firm e...