Search results

The dual labor market theory is one of the primary explanations for the gender differences in earnings. It shows that gender inequality and stereotypes lead to employment of men and women in different segments of the labor market characterized by various incomes. This theory is based on the hypothesis that such markets are divided into segments, which are divided by different rules of conduct for workers and employers. Differences also include production conditions, terms of employment, productivity of employees, and the characteristics of the workers' jobs. This labor division is related to employee characteristics such as gender, age, and race that define their work environment and lifestyle.

Abstract
Some products, notably but not only platforms, increase in value for users as the number of other users increases. These interaction or network effects can result in 'product market traps' (Bursztyn et al., 2023) where people who use the product would be better off if they all stopped using it and switched to another product, but cannot because of coordination problems. A parallel but overlooked phenomenon is the labor market trap, where employees would be better off if they collectively left an employer, job, or profession, but cannot because of the difficulty of coordination. Product market and labor market traps pose a challenge to public policy because of the complexity of people's behavior in networks, but can be mitigated in some cases with relatively simple taxes and regulatory interventions.

The World Bank's Deep Integration project aims to map the content of disciplines in different areas of trade regulation in order to generate a new database on deep trade agreements. This chapter covers labor market protections (or regulations, depending on one's perspective) in trade agreements, which have gained unexpected ground in international labor regulation over the past three decades.

We develop, estimate, and test a tractable general equilibrium model of oligopsony with differentiated jobs and concentrated labor markets. We estimate key model parameters by matching new evidence on the relationship between firms' local labor market share and their employment and wage responses to state corporate tax changes. The model quantitatively replicates quasi-experimental evidence on imperfect productivity-wage pass-through and strategic wage setting of dominant employers. Relative to the efficient allocation, welfare losses from labor market power are 7.6 percent, while output is 20.9 percent lower. Lastly, declining local concentration added 4 percentage points to labor's share of income between 1977 and 2013. (JEL E25, H71, J24, J31, J42, R23)