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Fixed cost, number of firms, and skill premium: An alternative source for rising wage inequality

  • Kurokawa, Yoshinori

The number of firms and the wage inequality increased in U.S. manufacturing industries after the Carter/Reagan deregulation was implemented. By extending a variety model, this paper provides a possible theoretical explanation for this observation on the basis of fixed cost.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 108 (2010)
Issue (Month): 2 (August)
Pages: 141-144

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Handle: RePEc:eee:ecolet:v:108:y:2010:i:2:p:141-144
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Dinopoulos, Elias & Segerstrom, Paul, 1996. "A Schumpeterian Model of Protection and Relative Wages," Working Paper Series 471, Research Institute of Industrial Economics.
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