Although much has been learned about the role firms play in the labor market, whether establishments within the same firm adopt similar labor-market practices is an open question. This question is particularly relevant for firms with establishments in different locales and industries. For example, a finding that wages within a firm have a common component across unrelated workers and industries...

The paper integrates marriage matching with the collective model of spousal labor supplies with full risk sharing. It derives observable implications of how marriage market conditions a¤ect spousal labor supplies. In addition to sex ratio which is an indirect measure, it provides a direct measure of changes in marriage market conditions. The framework also clari…es the identifying assumptions n...

Labor market policies succeed or fail at least in part depending on how well they reflect or account for behavioral responses. Insights from behavioral economics, which allow for realistic deviations from standard economic assumptions about behavior, have consequences for the design and functioning of labor market policies. We review key implications of behavioral economics related to procrasti...

We show that the impact of globalization on growth and wages crucially depends on the labor market structures of the countries involved. We contrast bargaining and perfect competition. Under perfect capital markets, convergence of capital and income per capita always occurs despite di®erent labor market structures. However, di®erent labor market structures prevent convergence of the income shar...

This paper estimates the macroeconomic effect of labor market programs on labor force participation. Labor market programs could counteract business-cycle variation in the participation rate that is due to the discouraged-worker effect, and they could prevent labor force outflow. An equation that determines the participation rate is estimated with GMM, using panel data (1986-1998) for Sweden’s ...

Mexico has engaged in many trade agreements that have left unaffected internal competition, being one of the most trade-opened countries in the world is also one of the most restrictive regarding product market competition. For developing countries, this is a field to study that still need to be undertaken. This paper relates informality in the Mexican labor markets outcomes with market competi...

Persistence and the German Unemployment Problem: Empirical Evidence on German Labor Market Flows Using a retrospective monthly calendarium of individuals’ major economic activities, this paper characterizes the monthly employment and unemployment rates and the monthly transition intensities between the states of employment, unemployment, and out-of-thelabor-force for the German labor market bet...

What can one infer about labor market °ows from matched employer-employee panel data? The purpose of this paper is to sketch possible answers to this question. A general but simple labor market equilibrium model of hire and separation °ows is developed in the paper. The model embodies the hypothesis that worker productivity di®ers across employers and that worker and employer °ows re°ect respon...

We develop a simple model of labor market participation, human capital degradation, and re-training. We focus on how non-participation, as a distinct state from unemployment and employment, is determined by the welfare system in interaction with labor market conditions and personal characteristics. We provide a tractable framework to analyze how the decisions to exit the labor force and to miti...

We show that labor search frictions are an important determinant of the cross-section of equity returns. In the data, sorting firms by loadings on labor market tightness, the key statistic of search models, generates a spread in future returns of 6% annually. We propose a partial equilibrium labor market model in which heterogeneous firms make optimal employment decisions under labor search fri...