Abstract We analyze involuntary unemployment based on consumers’ utility maximization and firms’ profit behavior with ongoing nominal wage rate decline. consider a three-periods overlapping generations (OLG) model childhood period as well younger older periods under monopolistic competition increasing, decreasing or constant returns to scale technology. When there exists unemploymnet, the may e...

The gender wage gap varies across countries. For example, among OECD nations women in Australia, Belgium, Italy and Sweden earn 80% as much as males, whereas in Austria, Canada and Japan women earn about 60%. Current studies examining cross-country differences focus on the impact of labor market institutions such as minimum wage laws and nationwide collective bargaining. However, these studies ...

This paper examines the effect of changes in the real exchange rate on skill upgrading in the case of Chile. Using plant-level data from the manufacturing sector we find that a real depreciation increases the share of skilled workers in the total wage bill in exporters but not in non-exporters. This result suggests that depreciations or, more generally, increases in export profitability, may in...

Each generation of digital innovation has caused a dramatic change in the way people work. Sharing economy is the latest trend of digital innovation, and it has fundamentally changed the traditional business models. In this paper, we empirically examine the impacts of the sharing economy platforms (specifically, Uber) on the labor market in terms of labor force participation, unemployment rate,...

How does the minimum wage affect crime rates? Empirical research suggests that increasing a worker’s wage can deter him from committing crimes. On the other hand, if that worker becomes displaced as a result of the minimum wage, he may be more likely to commit a crime. In this paper, I describe a frictional world in which a worker’s criminal actions are linked to his labor market outcomes. The ...

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...

Gil Skillman’s comments fall into two groups: specific comments on the model and broader questions concerning the fruitfulness and power of our approach in comparison to other approaches. We briefly address the specific points before turning to the some of the interesting and more general issues raised by Skillman. Skillman suggests that our account of the movements in relative wages implies th...

The dimensions of employment problems are not just limited field or job opportunities and low productivity but much more serious with different causes. This study aims to determine the effect rate economic growth, minimum wages, number industrial units on in South Sumatra Province. data analysis method used this is a quantitative using panel regression usage. research covers broad scope, namely...