T he state of the labor market, employment and unemployment, plays an important role in the deliberations of policymakers, the Federal Reserve Bank included. Over the last 30 years, economic theory has led to substantial progress in understanding the mechanics of business cycles. Much of this progress in macroeconomics has been associated with the use of calibrated dynamic equilibrium models fo...

this paper tries to survey irans regional labor market disequilibrium within 1996-2000. according to the results there has been an increase in the amount of disequilibrium of irans national as well as regional labor markets. incomplete labor market information on vacant job opportunities in different regions of the country along with high costs of migration have been the major causes of unemplo...

This study undertakes a systematic experimental investigation of hysteresis (path dependency) in an agent-based computational labor market framework. It is shown that capacity asymmetries between work suppliers and employers can result in two distinct hysteresis effects, network and behavioral, when work suppliers and employers interact strategically and evolve their worksite behaviors over tim...

This paper considers models of intratemporal consumption–labor choice and intertemporal consumption choice under heterogeneity and private information in preferences towards labor. We show that market regime regarding unemployment insurance is important to determine the effects of heterogeneity and private information on allocations and valuations. There are two main results. First, intertempor...

Standard real business cycle models must rely on total factor productivity (TFP) shocks to explain the observed comovement of consumption, investment, and hours worked. This paper shows that a neoclassical model consistent with observed heterogeneity in labor supply and consumption can generate comovement in the absence of TFP shocks. Intertemporal substitution of goods and leisure induces como...

This paper seeks to analyze the dynamic behavior of prime-age male workers’ earnings inequality in the formal labor market of the State of São Paulo in the years 1990-1998. The aim is to fit an econometric model of unobserved earnings components into the empirical earnings variance-covariance structure in order to evaluate the relative magnitude of individual characteristics and earnings instab...

The Swedish adult education program known as the Knowledge Lift is unprecedented in its size and scope, aiming to raise the skill level of all lowskilled workers towards the medium level. This paper evaluates the effects of program participation on individual labor market outcomes, notably employment and annual income, as well as on the labor market equilibrium. For the effects at the individua...

When only group performance is observable, incentives depend on the distribution of payments between group members. This distribution differs between firms. In this paper, we analyze whether the coexistence of various group performance-based payment schemes on the labor market can be related to agents’ heterogeneity. We test by a laboratory experiment whether agents self-select between a compet...