@techreport{Guadalupe2005Product,
abstract = {This paper shows that increasing product market competition can have a direct impact on the
employment relationship and on wage inequality. I develop a simple model in which an
increase in product market competition increases returns to skill through the effect of
competition on the sensitivity of profits to cost reductions. I then show empirically that relative
wages increase with competition using a large panel of United Kingdom workers with
complete work histories. I identify the impact of competition on returns to skill in the panel,
using two exogenous measures of competition provided by two quasi-natural experiments.
Quantile regressions indicate that increased competition also raised returns to unobserved
ability.},
author = {Maria Guadalupe},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D21; L22; J33; J31; 330; wage structure; returns to skill; product market competition},
language = {eng},
number = {1556},
title = {Product Market Competition, Returns to Skill and Wage Inequality},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/21332},
year = {2005}
}
