
Macroeconomics & Trade seminar series | Labor Supply and Firm Size by Faisal Sohail
Invites you to a
Macroeconomics and Trade seminar presented by
(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)
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