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The remuneration/ price of labor, analogue to profits and rents.

3 votes

How can median wages be significantly different in two neighboring countries with open borders?

As Tobias said, wages in general only adjust in neighboring regions if people move between the regions until expected utility (of working in either region) equalizes. … Differences between wages and productivity Why do I keep saying expected utility instead of wages? That is because wages in general reflect more than just productivity. …
FooBar's user avatar
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2 votes
1 answer
199 views

Value added by workers

Is there any empirical evidence on the value added by workers? That is, their "productivity" minus the wage payments, social security benefits etc. that are paid by the firm? I'm eventually looking …
FooBar's user avatar
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9 votes
Accepted

Causes of income inequality in the US

The reason you bring forward belongs to technological directed change, which is regarded one of the main explanations for wage growth differentials. Keep in mind it's not exactly the way you're phrasi …
FooBar's user avatar
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3 votes

Wage regressions: Nominal versus real wage

If there is inflation, the nominal wages most likely will go up over time, but you don't want to think that your return to education does that, it's just inflation. …
FooBar's user avatar
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2 votes
1 answer
28 views

Guvenen et al: Earnings

Guvenen et al look at earnings shocks over time, and try to argue whether these are compatible with standard career-ladder models with normal shocks. However, their data is no real shocks, it is time …
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