Wage inequality in a frictional labor market

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Shapiro, Joel. Wage inequality in a frictional labor market. 2002
To cite or link this document: http://hdl.handle.net/10230/918
dc.contributor.author Shapiro, Joel
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2002-04-01
dc.identifier.uri http://hdl.handle.net/10230/918
dc.description.abstract Wage inequality in the United States has grown substantially in the past two decades. Standard supply-demand analysis in the empirics of inequality (e.g.Katz and Murphy (1992)) indicates that we may attribute some of this trend to an outward shift in the demand for high skilled labor. In this paper we examine a simple static channel in which the wage premium for skill may grow -increased firm entry. We consider a model of wage dispersion where there are two types of workers and homogeneous firms must set wages and preferences for what type of worker they would like to hire. We find that both the wage differential and the demand for high skill workers can increase with the proportion of high skill workers -these high skill workers therefore 'create' their own demand without exogenous factors. In addition, within group wage inequality can increase in step with the between group wage inequality. Simulations of the model are provided in order to compare the findings with empirical results.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 614
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Wage inequality in a frictional labor market
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2016-06-04T02:50:38Z
dc.subject.keyword Microeconomics
dc.subject.keyword wage posting
dc.subject.keyword wage inequality
dc.subject.keyword search
dc.rights.accessRights info:eu-repo/semantics/openAccess

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