This study presents an explorative econometric analysis of the influence of labour market flows on wage formation. It applies the vector cointegration and common trends methodology of Johansen (1995). According to this approach, a combination of the flow of layoffs (flow from employment to unemployment) and the flow. of filled vacancies (successful matches) appears to be an adequate alternative...

# The authors acknowledge the financial support of the former German Federal Ministry for Economics and Technology (meanwhile the German Federal Ministry for Economics and Labour). The usual disclaimer applies.

Biographical notes: Jack Reardon teaches economics in the School of Business at the Hamline University. His research interests include economics education, energy and the environment, and labour economics. He has published in a wide variety of journals including the Journal of Economic Issues, Monthly Labor Review and International Journal of Green Economics. He has published A Handbook for Plu...

Cognitive economics is the economics of what is in people's minds. It is a vibrant area of research (much of it within behavioural economics, labour economics and the economics of education) that brings into play novel types of data, especially novel types of survey data. Such data highlight the importance of heterogeneity across individuals and highlight thorny issues for welfare economics. A ...

How does future income uncertainty affect child labour and human capital accumulation? Using a unique panel dataset, we examine the effect of changes in climate variability on the allocation of time among child labour activities (the intensive margin) as well as participation in education and labour activities (the extensive margin). We find robust evidence that increased climate variability in...

It is increasingly recognized that labour markets are pervasively imperfectly competitive, that there are rents to the employment relationship for both worker and employer. This chapter considers why it is sensible to think of labour markets as imperfectly competitive, reviews estimates on the size of rents, theories of and evidence on the distribution of rents between worker and employer, and ...

Models of ‘modern monopsony’ based on job differentiation and/or search frictions seem to give employers non-negligible market power over their workers while avoiding the assumption of ‘classical monopsony’ that employers are large in relation to the size of the labour market that many labour economists find implausible. But, this paper argues that this is somewhat of an illusion because modern...

This paper provides a review of how questions in labour economics link to the central concerns of development economics in understanding the mechanisms that both create, and perpetuate, poverty in some countries and not others and in some areas within countries. The paper frames this link by asking what determines first the price of labour, then the nature of employment open to labour and final...