Wage Policies and the Integration of Immigrants

Economic Integration , Wage Policies and Social Policies

This paper sets up a two country monopolistic competition model with intra-industry trade to study the effects of an exogenous differential in wage and social policies on the location of industry. Two model scenarios are considered. In the traditional one with physical capital, such a differential induces a relocation effect which increases with the level of trade integration. The ‘new economic...

Wage policies of a

We use a rich personnel data set from a Russian firm for the years 1997 to 2002 to extend the analysis of internal labor markets to economies in transition. Our focus is on the effect of the financial crisis in 1998 and its aftermath on wages and the welfare of workers in the firm, providing evidence of how costs are distributed inside firms during such dramatic macroeconomic upheavals. We show...

The Effectiveness of Settlement and Integration Policies towards Immigrants and Their Descendants in Sweden

On Wage Policies and Unemployment

In economies where the price of labour is determined outside of competitive markets the question arises as to whether the observed evolution of wages is likely to contribute to a decline in unemployment. I develop and discuss a benchmark, the neutral wage policy, to which the actual evolution of wages can be compared. Here, neutrality refers to the unemployment rate and not to the level of empl...

Optimal Feedback and Wage Policies∗

We consider a principal-agent setting in which the principal has superior expertise to assess performance of the agent. The agent, if capable and making an effort, generates successes exponentially distributed over time. The principal observes successes and may disclose them to the agent via (i) a feedback policy, if transfers are not allowed, or (ii) a wage policy, if transfers are allowed. We...