Product Market Integration, Rents and Wage Inequality

Regional Integration and Wage Inequality

There is little disagreement among most economists that countries benefit from trade liberalization. Yet, whether unilateral, multilateral (through the World Trade Organization) or through regional integration agreements (RIAs), trade liberalization has been one of the most controversial economic issues of our time. It is the focus of everyone from politicians to union leaders and anti-globaliz...

Labour Market Institutions and Wage Inequality

In this paper we investigate the importance of labor market institutions such as unemployment insurance, unions, …ring regulation and minimum wages for the evolution of male wage inequality across countries. We derive a simple log-linear equation of the wage di¤erential as a function of the institutional parameters, total factor productivity, …nal good prices and relative skill supply. Our esti...

Wage Inequality and Entrepreneurship Job Market Paper

This paper provides a theory of wage inequality that hinges on entrepreneurship. The theory is motivated by new empirical findings. Among them, I document that in countries where barriers to entrepreneurship are high, wage inequality is low. As noted in the literature, differences in wage inequality across countries are, to a great extent, determined by differences in the skill premium, defined...

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...