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- Performance Pay And Within-Firm Wage Inequality
- This paper explores the impact of performance related pay schemes on wage inequality. In particular, the analysis focuses on the presence of interaction effects between performance related pay and union bargaining. The theoretical framework predicts that performance-pay schemes enhance intra-firm wage inequality, but that union influence strongly reduces the widening...
- White papers 2006-04-01
- Foreign Direct Investment, Wage Inequality, And Skilled Labor Demand In EU Accession Countries
- During the 1990s Poland, Hungary and the Czech Republic have experienced rapid increases in wage inequality between skilled and unskilled workers and received the largest FDI Foreign Direct Investment inflow in Central and Eastern Europe. This paper analyzes whether FDI has contributed to the raise in earning inequality via a...
- White papers 2004-08-12
Additional Resources
- Richmond Fed's Latest Economic Quarterly Features New Thoughts on Wage Inequality and Unemployment
- What's Driving Wage Inequality? Wage inequality has increased sharply in the United States since the mid-1970s. Some have argued that globalization -- in particular, increased international trade and immigration -- is primarily responsible for changes in the wage distribution. However, Senior Vice President and Director of Research, John Weinberg and...
- Research articles 2005-08-30
- Outsourcing, Innovation, And Wage Inequality In The United States
- A puzzle of outsourcing is why the effects of outsourcing on wage inequality found in most empirical papers on the 1980s can not be seen when investigating the 1970s. Two additional questions of this puzzle are: did wages for all skilled labor decrease because of outsourcing? Second, is the falling...
- White papers 2007-02-26
- Product Market Competition, Returns To Skill And Wage Inequality
- This paper shows that increasing product market competition can have a direct impact on the employment relationship and on wage inequality. The author develops a simple model in which an increase in product market competition increases returns to skill through the effect of competition on the sensitivity of profits to...
- White papers 2005-05-01
- The Relationship Between Outsourcing And Wage Inequality Under Sector-Specific FDI Barriers
- A general equilibrium model is developed in which two final goods are assembled from a continuum of intermediate goods that differ in intensity between skilled and unskilled labor. A range of intermediate goods are outsourced from North to South through foreign direct investment FDI. Outsourcing shifts demand toward skilled labor...
- White papers 2003-08-20
- Jobs and wages revisited. (wage flexibility)(Economics Focus)(Column)
- A prevailing economic theory has been that nations with the greater wage inequality will have the lowest unemployment, however a new report from the Organization for Economic Cooperation and Development disputes that theory. The relationship between employment and wage equality not apparent.WHEN the facts change, I change my mind. What...
- Research articles 1996-08-17
- Moving up, moving out. (income inequality among countries in Organization for Economic Cooperation and Development)(Economic Focus)
- A report by the OECD examines rising and lowering salaries as people move in and out of the labor market and the correlations of deregulation with income inequality. The report finds that wage changes in 7 European countries and the US are very similar deA report by the OECD examines...
- Research articles 1996-07-20
- Does Outsourcing Always Benefit Skilled Labor?: A Dynamic Product Cycle Model Approach
- To understand why outsourcing did not cause wage inequality in the 1970s, this paper builds a dynamic product cycle model with three kinds of labor inputs, scientists, white-collar workers, and blue-collar workers. First, there is only a homogenous representative producer in the model and then the paper allows for producer...
- White papers 2007-02-26
- U.S. Hotel Workers
- The U.S. hotel industry is low-wage industry that has grown rapidly over the past two decades provides jobs for workers with little formal education or training, including some people leaving welfare. Hotels have also received public economic development subsidies as part of central city economic development projects. This report summarizes...
- White papers 2002-09-01
- Demand Side Considerations and the Trade and Wages Debate
- Recent trade and wages literature focuses on whether trade or technology has been the major source of increases in wage inequality in OECD countries since the 1980s. In this literature, no attention has been paid to demand side considerations. Using a simple heterogeneous goods trade model of the Armington type,...
- White papers 2000-04-01
- Pay Inequality, Pay Secrecy, and Effort: Theory and Evidence
- This report studies the worker and firm behavior in an efficiency-wage environment where co-workers' wages may potentially influence a worker's effort. Theoretically, it shows that an increase in workers' responsiveness to co-workers' wages should lead profit-maximizing firms to compress wages under quite general conditions. The experimental evidence provides little support...
- White papers 2005-11-01
- New Book Offers Reform Agenda for a Working America.
- Byline: The Urban Institute WASHINGTON, Sept. 6 AScribe Newswire -- Wage inequality in the United States is large and growing. At the same time, numerous federal policies discourage some people from working. A new book from the Urban Institute Press explains how government programs...
- Research articles 2006-09-06
- How Workers Fare When Employers Innovate
- From the executive summary: 'Complementing existing work on firm organizational structure and productivity, the paper examines the impact of organizational change on workers. The paper examines the evidence that employers do appear to compensate at least some of their workers for engaging in high performance workplace practices. The paper also...
- White papers 2003-03-01
- The Labor Market Effects Of Fragmentation, Outsourcing And Immigration: Two Sides Of The Same Story?
- Using a variant of the Ricardo-Viner model, fragmentation of manufacturing is analyzed, outsourcing of services, and immigration of both skilled and unskilled workers. Situation is considered in which; Fragmentation arises out of the Heckscher-Ohlin factor intensity difference; Outsourcing is caused by increasing returns to scale in production; and skilled immigrants...
- White papers 2005-03-07
- Outsourcing And Wage Inequality In A Dynamic Product Cycle Model
- This paper constructs a dynamic North-South trade model with outsourcing and endogenous innovation. Production of high quality goods is first performed in the North Northern phase, then split between the North and the South Outsourcing phase, and finally shifted to the South Southern phase. This cycle is reignited whenever a...
- White papers 2004-10-01
- Labour, trade limits unhelpful, Bernanke.
- Byline: Craig Torres Feb 07, 2007 (The Australian Financial Review - ABIX via COMTEX) -- US Federal Reserve Board chair Ben Bernanke spoke on the issue of labour market and trade restrictions in a February 2007 speech. Bernanke claimed hindrance of trade and technology...
- Research articles 2007-02-07
- Wage wars: the rich get richer and the poor get poorer - in the world according to the Congressional Budget Office
- THE proposition that income inequality is a problem, and a growing one, has become a staple of the Left. Assertions of a "widening gap between rich and poor Americans" and a "disappearing middle class" appear daily in the nation's newspapers. Statistics have been manipulated shamelessly to make this claim...
- Research articles 1996-04-22
- The Living Low Paid | BTalk Australia
- (16min 48) There’s a concern that the unempoyment rate will rise this year, but what about those people working part-time for a low wage? It’s an increasing proportion of the Australian workforce yet it attracts little attention from policy makers. On today’s BTalk Australia Phil Dobbie talks...
- Blog posts 2009-03-04
- New England's Rich Widened the Pay Gap in the 1990s, Study Shows.
- By Kimberly Blanton, The Boston Globe Knight Ridder/Tribune Business News Jun. 6--New England's rich got bigger pay raises during the 1990s economic boom than in the 1980s, widening the gap between the top and everyone else, a new study shows. ...
- Research articles 2003-06-06
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