Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
- Publication Type
Articles 1 - 5 of 5
Full-Text Articles in Social and Behavioral Sciences
Employment And Distribution Effects Of The Minimum Wage , Fabián Slonimczyk, Peter Skott
Employment And Distribution Effects Of The Minimum Wage , Fabián Slonimczyk, Peter Skott
Economics Department Working Paper Series
This paper analyzes the effects of the minimum wage on wage inequality, relative employment and over-education. We show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and produce a fall in inequality. Evidence from the US suggests that these theoretical results are empirically relevant. The over-education rate has been increasing and our regression analysis suggests that the decrease in the minimum wage may have led to a deterioration of the employment and relative wage of low-skill workers.
Heterodox Macro After The Crisis, Peter Skott
Heterodox Macro After The Crisis, Peter Skott
Economics Department Working Paper Series
Macroeconomics is in crisis and this creates openings for alternative perspectives. The dominant heterodox traditions, however, have shortcomings that need to be addressed, both to improve our understanding of the real world and to take advantage of the opportunities offered by the irrelevance of most mainstream macro. This paper discusses three examples of areas that need attention: (i) investment functions (where popular specifications lack behavioral and empirical support), (ii) income distribution (where key developments have received little attention) and(iii) the relation between income inequality and financial markets (where extensions of existing models may help explain financial instability)
Increasing Inequality And Financial Instability, Peter Skott
Increasing Inequality And Financial Instability, Peter Skott
Economics Department Working Paper Series
Rising inequality affects the composition of asset demands as well as aggregate demand. The poor have few financial assets and their portfolio is skewed towards fixed-income assets. The rich, by contrast, hold a large proportion of their wealth in stocks. Thus, an increase in inequality tends to raise the demand for stocks. This generates capital gains, and these gains can fuel a bubble, as desired portfolios shift further towards stocks.
Employment And Distribution Effects Of The Minimum Wage, Fabian Slonimczyk, Peter Skott
Employment And Distribution Effects Of The Minimum Wage, Fabian Slonimczyk, Peter Skott
Economics Department Working Paper Series
This paper analyzes the effects of the minimum wage on wage inequality, relative employment and over-education. Using an effciency wage model we show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and produce a fall in inequality. Evidence from the US suggests that these theoretical results are empirically relevant. The over-education rate has been increasing and our regression analysis suggests that the decrease in the minimum wage may have led to a deterioration of the employment and relative wage of low-skill workers.
Skill Mismatch And Wage Inequality In The U.S., Fabian Slonimczyk
Skill Mismatch And Wage Inequality In The U.S., Fabian Slonimczyk
Open Access Dissertations
This dissertation is an empirical investigation into the distributive effects of overand under-education, defined as market outcomes such that some workers possess skills over or below those required at their jobs respectively. This type of market failure can arise in assignment and search equilibrium settings, as well as in the presence of asymmetric information regarding workers' performance on the job. The existence of permanent and sizable mismatch rates means that returns to education are depressed for over-educated workers and in ated for under-qualified workers. Thus, irreversible decisions to invest in human capital are made in a context of uncertainty regarding …