Abstract: This paper investigates the joint effect of local labor market conditions and individual This paper investigates the joint effect of local labor market conditions and individual differences on the duration of self-employment periods. Using register based, data the study focuses on previously unemployed business founders who have received public support to realize their entrepreneurial...

We develop a three-country version of the Helpman, Melitz and Yeaple (2004) model with firm heterogeneity, industry heterogeneity and country heterogeneity to study firms’ foreign market entry strategies. We show that (i) for any single host country, the export-FDI cutoff is higher in more skill-intensive industries than in less skillintensive industries; and (ii) for any single industry, the c...

A competitive search model of the labor market is embedded into a small open economy with firm and worker heterogeneity. Search frictions generate equilibrium unemployment and income inequality between identical workers, in addition to income differences between skill groups. Numerical simulations of the model reveal that an increase in trade is likely to increase within-group inequality and de...

During the last 30 years, Turkey has undergone profound economic and social transformations, including fundamental shifts from the state-oriented economy to the market-oriented economy; large scale modernization investments in telecommunication and transportation services; and the low-intensity ongoing armed-conflict concentrated in the country’s Southeastern Region. For such a period, using th...

Real-world labor markets are characterized by highly heterogeneous outcomes relative to observable heterogeneity in worker and employer attributes. Micro-foundation explorations of the possible sources of this outcome heterogeneity are diicult due to analytical intractability and data measurement problems. This study uses an agent-based computational economics model of a labor market to underta...

Subjective Health Assessments and Active Labor Market Participation of Older Men: Evidence from a Semiparametric Binary Choice Model with Nonadditive Correlated Individual-Specific Effects We use panel data from the US Health and Retirement Study 1992-2002 to estimate the effect of self-assessed health limitations on active labor market participation of men around retirement age. Self-assessmen...