Skip navigation

Wage inequality, segregation by skill and the price of capital in an assignment model

Thumbnail
View
1,29 MB
Authors
Issue Date
2006
Physical description
41 p.
Abstract
Some pieces of empirical evidence suggest that in the U.S., over the last few decades, (i) wage inequality between-plants has risen much more than wage inequality within-plants and (ii) there has been an increase in the segregation of workers by skill into separate plants. This paper presents a frictionless assignment model in which these two features can be explained simultaneously as the result of the decline in the relative price of capital. Additional implications of the model regarding the skill premium and the dispersion in labor productivity across plants are also consistent with the empirical evidence. [resumen de autor]
Publish on
Documentos de trabajo / Banco de España, 0613
Subjects
Appears in Collections:


loading