Authors:

  • Maximilian Kasy

Excerpt

Labor demand and wage inequality in Europe – an empirical Bayes approach, Maximilian Kasy, February 25, 2015, Paper, To what extent can changes in the distribution of wages be explained by changes in labor supply of various groups (due to demographic change, migration, or expanded access to education), and to what extent are other factors (technical and institutional change) at work? We develop a flexible methodology for answering this central question of labor economics, using an empirical Bayes approach, without imposing the restrictions on heterogeneity and on cross-elasticities of labor demand assumed by the literature. Link