Working Paper
The wage-setting power of firms
Using administrative tax records from South Africa for the period 2011–14, I find that firm wage premia explain 25 per cent of the total wage variance, 60 per cent of the gender wage gap, and 40 per cent of the gap between workers in the middle and...
Working Paper
Rent sharing, wage floors, and development
Faced with more favourable demand conditions, many firms raise wages. However, we show that firms with labour market power, lower productivity, and binding wage floors will absorb these positive revenue productivity shocks as excess profits instead...