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University of Massachusetts Amherst

Economics Department Working Paper Series

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Skill Differences And Wage-Effort Relationship: Who Are More Exploited, High-Skilled Or Low-Skilled Workers?, Hyun Woong Park, Dong–Min Rieu Jan 2023

Skill Differences And Wage-Effort Relationship: Who Are More Exploited, High-Skilled Or Low-Skilled Workers?, Hyun Woong Park, Dong–Min Rieu

Economics Department Working Paper Series

Who are more exploited, high-skilled or low-skilled workers? We address this question using the efficiency wage model with skill differentials incorporated. We perform simulations to find the Nash equilibrium numerically, and our central results are the following. First, higher-skilled workers are offered higher wages but exert less effort, and in particular the skill-wage relationship matches the observed data on wage inequality of the U.S. Second, we employ two measures of the degree of exploitation. On the one hand, the ratio between effort and wage the higher-skilled workers experience is lower than that of lower-skilled workers. This is due to their …


Inconsistent Definitions Of Gdp: Implications For Estimates Of Decoupling, Gregor Semieniuk Jan 2022

Inconsistent Definitions Of Gdp: Implications For Estimates Of Decoupling, Gregor Semieniuk

Economics Department Working Paper Series

Efforts to assess the possibilities for decoupling economic growth from negative environmental impacts have examined their historical relationship, with varying and inconclusive results. Part of the problem is ambiguity about definitions of environmental impacts, e.g. whether to use territorial or consumption-based measures of environmental impact. This paper shows that ambiguities arising from definitional changes to GDP are sufficiently large to affect the outcomes. I review the history of structural revisions to GDP using the example of the United States, and on international comparisons of purchasing power parity, compare decoupling results using various historical definitions of GDP on the same environmental …