This paper extends existing research on regional quality of life in Germany by newly estimating the role of region-specific (dis-)amenities in the determination of regional housing rents and wages. Different from previous studies, the empirical analysis draws on functional labor market areas recently delineated by Kosfeld and Werner [Raumf Raumordn (2012) 70: 49-64] rather than administrative j...

Globalization and Labor Market Outcomes: Wage Bargaining, Search Frictions, and Firm Heterogeneity We introduce search unemployment à la Pissarides into Melitz’ (2003) model of trade with heterogeneous firms. We allow wages to be individually or collectively bargained and analytically solve for the equilibrium. We find that the selection effect of trade influences labor market outcomes. Trade l...

This note presents a random search and matching model with ex ante heterogeneity in worker productivity. A Social Planner with the power to prevent labor market participation by the least productive is shown to increase economic effi ciency. This is true even at the Hosios rule which, under worker homogeneity, implements the constrained effi cient allocation.

This paper provides a detailed analysis of labor market flows in Germany and compares them to the US. It documents that in Germany average hiring and firing rates are much lower but that the firing rate volatility is 2.5 times larger. This leads to a contribution of 60 − 70% of firings to aggregate unemployment volatility, the opposite of what is found for the US. We document further that wage ...

In a labor market model of adverse selection, workers differ in their productivity levels. We introduce a second source of workers’ heterogeneity: their intrinsic motivation for the job. Intrinsic motivation is modeled as the monetary equivalent of a benefit workers obtain when they accept

We use recent farm household survey data from 5 Central European countries to explore the extent to which ill-functioning land and credit markets may present an obstacle to rural development. The first finding is that improved access to credit can, indeed, make a contribution to a more dynamic rural sector. A considerable share of rural households express their desire to expand agricultural cul...

In most of the developed world, skilled women marry at a lower rate than unskilled ones. We document heterogeneity across countries in how the marriage market penalty for skilled women has evolved over time. As labor market opportunities for women have improved, the penalty has been growing in some countries but shrinking in others. We propose a theoretical model in which the (negative) social ...

Economic research has developed estimates of the heterogeneity of the value of statistical life (VSL) on dimensions such as individual age, income, immigrant status, and the nature of the risk exposure. This paper examines the empirical evidence on the heterogeneity of VSL and explores the potential implications for the valuation of regulatory policies. Previously, the U.S. Environmental Protec...