The first essay studies the dynamics of wages and employment in the context of Vietnam during economic transition. Data analysis shows a consistent decrease in rural and agricultural shares of employment but a reverse change in relative wage: wage gap between rural and urban areas, between agricultural and manufacturing sectors expanded initially but shrank in the later periods. Using a two-sector model, I explore the relationship between labor mobility and relative wage and find that the deterioration of labor mobility barrier can explain for the observed changes in relative wage and employment. The model also confirms that complete removal of this barrier will lead to a faster convergence of rural and agricultural wages to urban and manufacturing wage. The second essay, on the other hand, studies the relationship between wage loss and technical change in the context of U.S. economy with the focus on skill transferability when workers move between jobs. Using a simple random matching model with the assumption that worker's skill is specific to the vintage of technology he/she is working with, I quantitatively identify skill transferability of displaced workers - the amount of skill workers can bring to a new job with new vintage of technology. The essay also confirms the negative relationship between skill transferability and the rate of technical change.The first essay studies the dynamics of wages and employment in the context of Vietnam during economic transition.
|Title||:||Essays on Wages and Employment|
|Publisher||:||ProQuest - 2008|