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Labor costs and business organizations

The project aims to document the mechanisms by which different labor cost shocks (e.g. discretionary increases in the minimum wage, industry agreements, etc.) are transmitted across the wage distribution as a whole. In particular, we wish to determine whether these transmission mechanisms are mainly at work within firms, via adjustments in their organizations and managerial practices, or whether the diffusion effects are primarily more standard general equilibrium mechanisms of labor market adjustment. This analysis will be extended by quantifying the impact of these shocks on the size and productivity distribution of firms.