In this study we investigate the minimum wage (MW) effects for a German sub-construction sector where the MW bites extraordinary hard by international standards. Within a quasiexperiment we estimate the Quantile Treatment Effects of the MW on the conditional and unconditional distribution of earnings. For Eastern Germany, the results indicate significant real (nominal) wage increases that rippl...

In the last few decades, the effects of cooperative R&D arrangements on innovation and welfare have played an important role in policy making. Both the US and the EU have legislation in place providing for lenient antitrust treatment of such cooperative agreements. The goal of this paper is to analyze the effects of cooperative R&D arrangements in a model with a stochastic R&D process and outpu...

This paper studies a moral hazard problem in which the agent can borrow on future wages before undertaking a costly e¤ort. The game between the agent and potential lenders is modelled as an in…nite stochastic game with an exogenous stopping probability. It is shown that regardless of the initial wage contract the agent sequentially enters into multiple borrowing agreements which dilute e¤ort in...

This paper is a survey of the literature on theoretical models of the household, paying particular attention to some of the earlier contributions, and using them to place the current state of the theory in perspective. One of its aims is to suggest that the literature’s neglect of Samuelson’s proposal, that households can be modelled as if they maximised a form of social welfare function, was a...

Using teacher level data from public, private, and charter schools, we examine how various school level wage frictions such as salary schedules and collective bargaining agreements affect the level of teacher quality across subject levels in U.S. high schools. We find that salary schedules have a significant negative effect on teacher quality, reducing quality by as much as 2-3%. The effect is ...

Inter-institutional cooperation is becoming the norm for innovations putting at centre stage of research inquiry the organisational knowledge for establishing, coordinating and innovating through cooperation. Case study evidence depicts the development of systematic processes for partner identification and management of cooperative agreements. Researchers recognising potential partners would pe...

Negotiated Agreements (NAs) are arrangements between firms and regulators in which firms voluntarily agree to reduce their pollution. This article analyzes the institutional features that facilitate or hamper the implementation of NAs. We illustrate the analysis with case studies on the implementation of NAs in the United States, Germany, the Netherlands, and France. We find that NAs are implem...

This paper argues that a risk averse of workers after-tax reservation wage the difference between her reservation wage and the tax needed to fund the unemployment insurance system when liquidity constraint binds exists and it is unique. The optimality of unemployment insurance based on the responsiveness of reservation wage to unemployment benefit shows the disincentive effect, i.e. higher unem...

In recent years layoffs have increasingly become the focus of public attention. So far, however, there has been no representative study for Germany of how far and under what conditions layoffs are accepted by the population – in other words by people who are not immediately affected. Principles of distributive justice, rules of procedural justice, attribution theory, and psychological contract ...

the minimum wage determination is one of the most significant economic issues exerting effects on macroeconomic variables. this study provides an empirical model using var method to analyze the long run relationships and short run dynamisms of factors affect general price level (with emphasis on minimum wage) during the period of 1978-2010. to examine long run relationships we used johansen-jus...