abstract this article aims to provide theoretical model for analyzing challenge of asymmetric information in the third sector of economy (which is the most important challenge, preventing the growth and development of third sector), using the theoretical foundation of contract theory and incentive theory with regard to the special characteristics of third sector derived by its special structure...

Why is income inequality higher in Latin America than in East Asia? Is this phenomenon related to the region’s natural resource abundance? Is it a contributor to Latin America’s slow and narrowly focused human capital accumulation? If so, can anything be done to reverse the Latin American trends, or should we think of the region’s fate as unalterable? To help answer these questions, this paper ...

We introduce non-homothetic preferences into an R&D based growth model to study how demand forces hape the impact of inequality on innovation and growth. Inequality affects the incentive to innovate via a price effect and a market size effect. When innovators have a large productivity advantage over traditional producers a higher extent of inequality tends to increase innovators’prices and mark...

Article history: Received 6 January 2012 Revised 20 August 2012 Available online 17 October 2012 JEL classification: F16 F22 F66 J61 O15

We study how search frictions in the labor market affect firms’ ability to recruit talented workers. In a field experiment Ethiopia, we show that an employer can attract more applicants by offering small monetary incentive for making job application. Estimates from structural model suggest intervention is effective because cost of application large, and positively correlated with jobseeker abil...

This paper provides an overview of methodologies used to analyze inter-regional income inequality, and a critical survey of empirical studies that deal with Russian regions. It discusses implications of the growth theory regarding dynamics of inter-economy income inequality. Methodologies for empirically analyzing income inequality are classified as the cross-section approach, time series appro...

this paper aims to analyze the relationship among the employee, the employer, and the government with the help of game theory. the game among these three players is of the sort of static games with complete information and the strategies used by each player have been determined in the figure of tending to change the current situation and tending to keep it. the equilibrium among this three play...

In this paper, I study the impact of the Hukou labor mobility restrictions on human capital investment in China. Rural people have stronger incentive to pursue higher education, treating it as means to obtain urban identity and escape from underdeveloped areas. The 1998 Hukou policy reform granted urban Hukou to a specific group automaticly. Using a Regression Discontinuity strategy to fully ex...

In 2012, Brazilian public universities were mandated to use affirmative action policies for candidates from racial and income minorities. We show that the policy makes students’ status a strategic choice may reject high-achieving minority students while admitting low-achieving majority students. Empirical data shows evidence consistent with this type of unfairness in more than 49 percent progra...

This paper reports on a two-tiered experiment designed to separately identify the selection and effort margins of pay for performance (P4P). At recruitment stage, teacher labor markets were randomly assigned “pay-for-percentile” or fixed-wage contract. Once recruits placed, an unexpected, incentive-compatible, school-level re-randomization was performed so that some teachers who applied contrac...