To address common structural imbalances and test emerging policy measures of the labor markets in a typical gulf cooperation council country, a prototype “macro-micro” economic model is developed. The model consists of a dynamic computable general equilibrium model that interacts with a labor market submodel and a discrete-event labor allocation computer simulation module. The results of applyi...

.................................................................................................................... iv Acknowledgments ...................................................................................................... iv Introduction ............................................................................................................... 1 Labor .........................

Using estimates of earnings functions in Ghana, this paper examines patterns of labor market segmentation with regard to formal and informal employment. Persistent earnings differentials are used as indicators of limited mobility across segments of the employed labor force. We find evidence of labor market segmentation between formal and informal employment and between different categories of i...

When borrowing is limited by possible insolvency, compression of labor income affords earlier consumption and higher welfare. Credit constraints also reduce the positive welfare effect of labor market turnover for workers whose labor income is temporarily low. These simple theoretical insights offer a rationale for the observed cross-country covariation of labor market regulation and consumer c...

This paper criticizes the view that discrimination limits the disadvantaged sex to undertaking housework and thus ensures that gains from specialization at the household level are not wasted. Our framework gives attention to causal links between labor market discrimination and the strategic behavior of women and men within families. We consider a repeated family bargaining model that links the ...

This paper quantifies the effects of trade liberalization on local labor market outcomes and workers’ migration patterns. I extend the classic specific-factors model to examine the impact of national price changes on local labor markets. The model describes how tariff changes across industries affect wages in local labor markets within the liberalizing country. In particular, wages will fall in...

This paper presents a theoretical analysis of optimal minimum wage policy in a perfectly competitive labor market. Introducing a minimum wage is desirable if the government values redistribution toward low wage workers. This result remains true in the presence of optimal nonlinear taxes and transfers. In that context, a minimum wage effectively rations low skilled labor which is subsidized by t...

In this paper we present a mechanism for determining nearoptimal prices for tasks in online labor markets, often used for crowdsourcing. In particular, the mechanisms are designed to handle the intricacies of markets like Mechanical Turk where workers arrive online and requesters have budget constraints. The mechanism is incentive compatible, budget feasible, and has competitive ratio performan...