Labor Market Segmentation and the Union Wage Premium

The Union Wage Premium in the US and the UK

This paper presents evidence of both counter-cyclical and secular decline in the union membership wage premium in the US and the UK over the last couple of decades. The premium has fallen for most groups of workers, the main exception being public sector workers in the US. By the beginning of the 21 Century the premium remained substantial in the US but there was no premium for many workers in ...

Threat Effect of Foreign Direct Investment on Labor Union Wage Premium

This paper explores the impact of “threat effects” of foreign direct investment on labor markets in the United States. In this context, the term “threat effect” refers to the use by employers of the implicit or explicit threat that they will move all or part of their production to a different location, even if they do not actually do so. In this paper, I construct a unique industry level panel ...

Immigration, Labor Market and Wage Inequality

Understanding the ADR premium under market segmentation

Capital controls can induce large and persistent deviations from the Law of One Price for cross-listed stocks in international capital markets. A considerable literature has explored firm-specific factors which influence ADR pricing when LOP is violated. In this paper, we examine the interlinkages between Indian ADR premiums and macroeconomic time-series. We construct an ADR premium index, wher...

Career Choice and the Risk Premium in the Labor Market

Is risk priced in the labor market? We document a strong, robust, and positive correlation between average earnings and the variance of both temporary and permanent idiosyncratic shocks to earnings across 21 US industries. However, since workers are heterogeneous in their abilities, the correlation may be entirely driven by selection. What portion of the correlation is compensation for risk and...