Professor Guadalupe's research interests are in the area of Labor Economics and the Economics of Personnel and Organizations. In her work, she has studied the effect of changes in the degree of competition in the product market that firms face on their internal behavior. In particular she has shown how increased product market competition leads to higher returns to skill and therefore increased wage inequality. Guadalupe has also studied the effect of the competitive environment on the compensation packages that firms offer to their executives and the degree to which they use performance related pay. Guadalupe teaches the core course Managerial Economics.