In this paper the Signalling approach to the explanation of wage di®erentials is analyzed both under a microeconomic and a macroeconomic viewpoint. Departuring from the classical Spence's model, the introduction of inequalities in accessing to education leads to redistributive e®ects among workers and ̄rms. Moreover the existence of factors related both to local and to parental externalities gr...

A principal owns a firm, hires an agent of uncertain productivity, and designs dynamic policy for evaluating his performance. The observes ongoing evaluations decides when to quit. When not quitting, the is paid wage that linear in expected productivity; claims residual After players secure fixed outside options. I show equilibrium Pareto efficient. For broad class performance technologies, det...

Inter-industry Wage Dispersion in Portugal: high but falling This paper examines the size of inter-industry wage dispersion in Portugal and compares with other countries. We find that the country has a high inter-industry wage inequality compared with the European standard. Nevertheless, the dispersion reduced over the 1980s and the early 1990s along a process of centralisation of the wage sett...

We show that the optimal prize structure of symmetric n-player Tullock tournaments assigns the entire prize pool to the winner, provided that a symmetric pure strategy equilibrium exists. If such an equilibrium fails to exist under the winner-take-all structure, we construct the optimal prize structure which improves existence conditions by dampening efforts. If no such optimal equilibrium exis...

In this paper we explore the application of structured additive distributional regression for the analysis of conditional income distributions in Germany following the reunification. Using a bootstrapped Kolmogorov-Smirnov test we find that conditional personal income distributions can generally be modelled using the three parameter Dagum distribution. Additionally our results hint at an even m...

Goldin (2014) offers a narrative in which gender differences home production responsibilities create gaps labor market outcomes. We carry out model-based quantitative assessment of this and find that it can account for significant share occupational choice, wages, hours. Our analysis emphasizes the significance two key elements not highlighted by Goldin: heterogeneity comparative advantage mult...

In this paper we explore the application of Generalised Additive Models of Location, Scale and Shape for the analysis of conditional income distributions in Germany following the reunification. We find that conditional income distributions can generally be modelled using the three parameter Dagum distribution and our results hint at an even more pronounced effect of skill-biased technological c...

In this paper I use extensive spatial variation in end-of-communism local skill endowment to test for the presence of human capital spillovers and to understand the regional variation in returns to education in a transition country — the Czech Republic. The evidence is consistent with a tendency of skill-intensive production to locate in areas relatively abundant in skills, but I find no eviden...

This paper combines individual-level data from the German Socio-Economic Panel (SOEP) with economic and demographic postcode-level data from administrative records to analyze the eff ects of immigration on wages and unemployment probabilities of highand low-skilled natives. Employing an instrumental variable strategy and utilizing the variation in the population share of foreigners across regio...

Fairness, Reciprocity, and Wage Rigidity This paper contains a review of empirical work related to wage rigidity, where researchers have collected their own data. The work includes field studies, economic experiments, and psychological surveys. Economists have done the field studies and experiments, and management scientists and experimental psychologists have done the surveys. There is a remar...