@TechReport{iza:izadps:dp1556,
            	author={Guadalupe, Maria},
            	title={Product Market Competition, Returns to Skill and Wage Inequality},
            	year={2005},
	month={Apr},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1556},
            	url={https://www.iza.org/publications/dp1556},
	abstract={This paper shows that increasing product market competition can have a direct impact on the employment relationship and on wage inequality. I develop a simple model in which an increase in product market competition increases returns to skill through the effect of competition on the sensitivity of profits to cost reductions. I then show empirically that relative wages increase with competition using a large panel of United Kingdom workers with complete work histories. I identify the impact of competition on returns to skill in the panel, using two exogenous measures of competition provided by two quasi-natural experiments. Quantile regressions indicate that increased competition also raised returns to unobserved ability.},
	keywords={product market competition;returns to skill;wage structure},
            }