Jiancai Pi, Pengqing Zhang

Horizontal Mergers and Wage Inequality

Volume 174 () / Issue 3, pp. 495-513 (19)

19,00 € including VAT
article PDF
This paper incorporates horizontal mergers into the general-equilibrium framework embedded with game theory and separately analyzes how horizontal mergers in the skilled sector and the unskilled sector influence the skilled-unskilled wage inequality. In an economy with full employment, a horizontal merger in the skilled sector will certainly reduce the wage gap. In an economy with unem-ployment, a horizontal merger in the skilled sector will conditionally expand the wage inequality. Whether in an economy with full employment or in an economy with unemployment, a horizontal merger in the unskilled sector will conditionally widen the wage gap.

Jiancai Pi No current data available.

Pengqing Zhang No current data available.