Wage inequality, welfare and downsizing

Sajid Anwar

Economics Letters, 2009, vol. 103, issue 2, 75-77

Abstract: By making use of a simple model that does not explicitly include capital, this paper examines the impact of downsizing on skilled-unskilled wage inequality and welfare. The paper shows that downsizing increases wage inequality and its effect on welfare is positive but the relative well-being of the unskilled workers declines.

Keywords: Wage; inequality; Monopolistic; competition; Downsizing (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:103:y:2009:i:2:p:75-77

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