Are US wages really determined by European Laborâ€“Market Institutions?
In this paper I develop a theoretical model explaining optimal wage-tenure profiles for heterogeneous labor. My findings entail that high productive people have steeper profiles than low productive individuals. I find strong empirical evidence for these findings. At the end of my paper, I utilize the basic model to describe the labor market entry of college graduates.
|Date of creation:||15 Sep 2004|
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- Taber, Christopher R, 2001. "The Rising College Premium in the Eighties: Return to College or Return to Unobserved Ability?," Review of Economic Studies, Wiley Blackwell, vol. 68(3), pages 665-91, July.
- Davis, Donald R, 1998. "Does European Unemployment Prop Up American Wages? National Labor Markets and Global Trade," American Economic Review, American Economic Association, vol. 88(3), pages 478-94, June.
- Wood, Adrian, 1998. "Globalisation and the Rise in Labour Market Inequalities," Economic Journal, Royal Economic Society, vol. 108(450), pages 1463-82, September.
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