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Work Organization, Wage Pressure in the Secondary Labor Market, and the Green Card

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Author Info
Josef Falkinger ()
Volker Grossmann ()

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Abstract

Two trends have marked the politico-economic discussion in many industrialized countries in recent years. On the one hand, international production, workplace decentralization, shareholder orientation and generous manager remuneration have changed the face of firms in the primary economy. On the other hand, there is increased pressure on the secondary labor market revealed by unemployment or declining wages of low-skilled workers. This paper establishes a causal relationship between the two trends by developing a model in which labor market segmentation stems from the fact that organizational labor (management) is a key element in the primary, but not in the secondary economy. We also evaluate the effectiveness of selective immigration policies for high-skilled workers (green card).

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 485.

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Date of creation: 2001
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Handle: RePEc:ces:ceswps:_485

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Related research
Keywords: Dual labor market; reorganization of work; organizational labor; international competition; green card;

Find related papers by JEL classification:
D20 - Microeconomics - - Production and Organizations - - - General
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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    Other versions:
  3. Fortin, Nicole M & Lemieux, Thomas, 1997. "Institutional Changes and Rising Wage Inequality: Is There a Linkage?," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 75-96, Spring. [Downloadable!] (restricted)
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    Other versions:
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  11. Olivier Blanchard & Francesco Giavazzi, 2001. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," NBER Working Papers 8120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Kimberly Bayard & Kenneth R. Troske, 1999. "Examining the Employer-Size Wage Premium in the Manufacturing, Retail Trade, and Service Industries Using Employer-Employee Matched Data," American Economic Review, American Economic Association, vol. 89(2), pages 99-103, May. [Downloadable!] (restricted)
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