RT Journal Article
T1 Social Preferences, Skill Segregation and Wage Dynamics
A1 Cabrales, Antonio
A1 Calvó-Armengol, Antoni
A1 Pavoni, Nicola
AB We study the earning structure and the equilibrium asignment of workers to firms in a model in which workers have social preferences, and skills are perfectly substitutable in production. Firms offer long-term contracts, and we allow for frictions in the labour market in the form of mobility costs. The model delivers specific predictions about the nature of worker flows, about the characteristic of workplace skill segregation, and about wage dispersion both within and cross firms. We shows that long-term contracts in the resence of social preferences associate within-firm wage dispersion with novel "internal labour market" features such as gradual promotions, productivity-unrelated wage increases, and downward wage flexibility. These three dynamic features lead to productivity-unrelated wage volatily within firms.
PB Blackwell
SN 0034-6527
YR 2008
FD 2008
LK https://hdl.handle.net/10016/3471
UL https://hdl.handle.net/10016/3471
LA eng
DS e-Archivo
RD 18 may. 2024