We examine how labor immigration affects public pensions under centralized wage setting. We show that immigration improves the sustainability of pay-as-you-go pensions if and only if total employment declines. This occurs if the labor demand elasticity exceeds the unemployment rate. JEL-Classification: F22, H55, J51

Do multinational firms exhibit different patterns of labor demand from purely domestic firms? Many standard models of trade and multinational companies suggest such differences. We examine this question using a plant-level panel covering U.K. manufacturing from 1973 through 1992, where we can distinguish U.K.-headquartered multinationals, foreign-owned multinationals, and domestic U.K. firms. A...

Do multinational firms exhibit different patterns of labor demand from purely domestic firms? Many standard models of trade and multinational companies suggest such differences. We examine this question using a plant-level panel covering U.K. manufacturing from 1973 through 1992, where we can distinguish U.K.-headquartered multinationals, foreign-owned multinationals, and domestic U.K. firms. A...

This paper represents the latest installment in a highly influential series of papers in which Paul Beaudry and Franck Portier shed light on the empirics and theory of demand shocks. The present paper makes two contributions. One is to show that a standard neoclassical model augmented to allow for labor market segmentation can produce comovement in output, consumption, investment, hours, and th...

1. In this chapter we looked at three models of the short-run aggregate supply curve. All three models attempt to explain why, in the short run, output might deviate from its long-run “natural rate”—the level of output that is consistent with the full employment of labor and capital. All three models result in an aggregate supply function in which output deviates from its natural rate Y when th...

Spatial and Temporal Aggregation in the Estimation of Labor Demand Functions The consequences of aggregation, temporal or spatial, for the estimation of demand models are theoretically well-known, but have not been documented empirically with appropriate data before. In this paper we conduct a simple, but instructive, exercise to fill in this gap, using a large quarterly dataset at the establis...

The paper studies wage formation in a pairwise matching model with heterogeneous labor. Firms propose wage offers unilaterally but workers can opt to search for alternative contacts besides pairwise meetings. Due to this option, the Diamond Paradox does not emerge but workers earn a non-trivial share of the transferable rent. Since the search option is disproportionately valuable for high skill...

The literature on regional disparities in China is both broad and deep. Nonetheless much of its focus has been on the effects of trade liberalization and national policies toward investment in interior provinces. Few pieces have examined whether the disparities might simply be due to differences in industry mix, final demand, or even interregional trade. Using the only two newly published multi...

Labor markets in all Organization for Economic Cooperation and Development (OECD) economies are under stress. Two main factors generate the pressure, although the precise contributions of these factors to unemployment and wage growth remain to be determined. The first factor is an apparent shift in the bias of technology toward skilled-labor-intensive methods of production. The second factor is...