Christian Dippel, Daniel Trefler, 05 November 2017

One way employers can compel workers to accept contracts they otherwise would not accept is by limiting the outside options for those workers. This column explores this facet of labour coercion in the context of post-Emancipation Caribbean islands prior to WWI. On islands where freed slaves had options other than plantation work, sugar exports fell dramatically. Where geographic factors limited these outside options, such as Antigua and Barbados, the plantation system continued to prosper.

Julián Messina, Oskar Nordström Skans, Mikael Carlsson, 23 October 2016

While standard microeconomic theory suggests that firms have no power over setting wages when markets are perfectly competitive, this view obviously clashes with the perceptions of the casual observer. This column uses data from Sweden to investigate the extent to which differences in firms’ pay are related to differences in physical productivity. It finds that firms that benefit from positive productivity shocks increase the wages of incumbent workers, and in particular firms among which there is substantial labour mobility. The evolution of productivity among such firms appears to be a crucial determinant of workers’ wages.

Enrique Fernández-Macías, Martina Bisello, 25 September 2016

A tasks approach to labour market analysis can contribute to a better understanding of structural change and employment trends. However, its narrow focus on a few specific types of task content and its neglect of the social aspects of production can limit the usefulness of this approach. This column presents a new framework for conceptualising and measuring tasks, and discusses an application to Europe.

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