Corporate governance, firm dynamics, and wage inequality

This review surveys the literature on sorting in the labor market. There are inherent differences in worker ability and across-firm productivity. Two fundamental questions are whether the exact composition of skills of workers and productivity of firms affects output and how this composition determines the equilibrium allocation of workers within a firm and between firms. There has been a surge of research investigating the causes and consequences of the process of allocation of heterogeneous workers to firms. The focus in this review is on theory that sheds light on open questions in macroeconomics, labor, and industrial organization, with a particular emphasis on the role of firm size. Those models allow us to infer from the observed sorting patterns (who matches with whom) what the underlying technological determinants are and how they have evolved in recent decades. Furthermore, they help us understand the technological origins of important labor market trends, such as the increase in wage inequality and the change in labor market and firm dynamics.

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Environmental corporate social responsibility, firm dynamics and wage inequality

International Review of Economics & Finance ◽

10.1016/j.iref.2018.03.018 ◽

2018 ◽

Vol 56 ◽

pp. 63-74 ◽

Cited By ~ 2

Author(s):

Mong Shan Ee ◽

Chi-Chur Chao ◽

Leonard F.S. Wang ◽

Eden S.H. Yu

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Wage Inequality ◽

Firm Dynamics ◽

Corporate Social

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Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy

The American Economic Review ◽

10.1257/aer.20110457 ◽

2016 ◽

Vol 106 (3) ◽

pp. 625-663 ◽

Cited By ~ 52

Author(s):

A. Kerem Coşar ◽

Nezih Guner ◽

James Tybout

Keyword(s):

Wage Inequality ◽

Open Economy ◽

National Income ◽

Firm Dynamics ◽

Job Turnover ◽

Firm Level ◽

Firing Costs ◽

Level Data ◽

Wage Distributions ◽

Trade Frictions

This paper explores the combined effects of reductions in trade frictions, tariffs, and firing costs on firm dynamics, job turnover, and wage distributions. It uses establishment-level data from Colombia to estimate an open economy dynamic model that links trade to job flows and wages. Counterfactual experiments imply that Colombia's integration with global product markets increased its national income at the expense of higher unemployment, greater wage inequality, and increased firm-level volatility. In contrast, contemporaneous labor market reforms dampened the increase in unemployment and aggregate job turnover. The results speak more generally to the effects of globalization on labor markets. (JEL F13, F16, F66, J31, J63, O15, O19)

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