Fixed cost, number of firms, and skill premium: An alternative source for rising wage inequality

Yoshinori Kurokawa

Economics Letters, 2010, vol. 108, issue 2, 141-144

Abstract: The number of firms and the wage inequality increased in U.S. manufacturing industries after the Carter/Reagan deregulation was implemented. By extending a variety model, this paper provides a possible theoretical explanation for this observation on the basis of fixed cost.

Keywords: Entry; deregulation; Fixed; cost; Number; of; firms; Skill; premium; Variety-skill; complementarity; Firm; size (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (6)

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Working Paper: Fixed Cost, Number of Firms, and Skill Premium: An Alternative Source for Rising Wage Inequality (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:108:y:2010:i:2:p:141-144

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