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• W3124551946 abstract "Abstract This paper shows robust effects of trade shocks on within-firm wage inequality through changes in firm hierarchies. It uses two distinct research designs—one considering firm-level shocks to foreign demand and transportation costs, the other analyzing the Muslim boycott of Danish exports after the 2006 “cartoon crisis.” Consistent with knowledge-based and incentive-based hierarchy models, trade shocks affect organizational choices through production scale. Adding a hierarchy layer increases inequality throughout the organization, particularly widening the 90-50 wage gap and pay differences between top and bottom layers. Delayering after the boycott leads to wage compression through wage cuts, demotions, and employee turnover." @default.
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• W3124551946 date "2022-07-01" @default.
• W3124551946 modified "2023-10-17" @default.
• W3124551946 title "Trade Shocks, Firm Hierarchies, and Wage Inequality" @default.
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• W3124551946 doi "https://doi.org/10.1162/rest_a_00998" @default.
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