Invites you to a

Macroeconomics and Trade seminar presented by

Faisal Sohail

(University of Melbourne) 

Labor Supply and Firm Size

Co-authors

Lin Shao (Bank of Canada)

Emircan Yurdagul (Charles III University of Madrid)

Wednesday 31 August

2.00pm – 3.30pm

Via Zoom: Meeting Link

Abstract: Larger firms exhibit i) longer hours worked, ii) higher wages, and iii) smaller (larger) wage penalties for working long (short) hours. We reconcile these patterns in a general equilibrium model, which features the endogenous interaction of hours, wages, and firm size. In the model, workers willing to work longer hours sort into larger firms that offer a wage premium. Complementarities in hours generate wage penalties that increase with the distance from average firm hours. We use the model to argue the importance of the interaction between hours, wages, and firm size for inequality and firm policy.

For further information contact: Macroeconomics and Trade seminar series coordinator Dr James Graham (james.a.graham@sydney.edu.au)

For all upcoming seminars in School of Economics see Our events and Calendar