Article ID Journal Published Year Pages File Type
972444 Labour Economics 2010 9 Pages PDF
Abstract

The paper develops a model where the structure of organizations is a choice variable for firms and depends on conditions in the labour market. It shows that an increase in the supply of skilled labour may lead firms to adopt organizations with less hierarchical levels. This organizational change increases firms' demand for skilled agents and qualitatively modifies their jobs (i.e. the set of tasks assigned to skilled employees) thus increasing the skilled wage premium.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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