This paper offers a model of the interaction between composition of jobs and labour market regulation. Ex-post rent-sharing due to search frictions implies that ‘good’ jobs which have higher creation costs must pay higher wages. This wage differential distorts the composition of jobs, and in...

This paper offers and tests a theory of training whereby workers do not pay for general training they receive. The crucial ingredient in our model is that the current employer has superior information about the worker’s ability relative to other firms. This informational advantage gives the...

In this paper we apply the statistical framework recently proposed by Imbens (1999) and Lechner (1999) to identify the causal effects of multiple treatments under the conditional independence assumption. We show that under this assumption, matching with respect to the ratio of the scores allows...

We estimate a model of the joint participation and mobility along with the individuals' wage formation in France. Our model makes it possible to distinguish between unobserved person heterogeneity and state-dependence. We estimate the model using state of the art Bayesian methods employing a...

In this paper we estimate by matching techniques the effects of a French retraining program on the reemployment rate of laid-off workers. This program, called “Conventions de conversion”, was intended to improve reemployment prospects of displaced workers by proposing them retraining and job...

This paper investigates the effect of employment while in college on graduation, using data from the French Labour Force Surveys over the period 1992 to 2002. Using spatial variation in low-skill youth unemployment rates to circumvent the endogeneity of college employment decisions, we find a...

In the standard model of human capital with perfect labor markets, workers pay for general training. When labor market frictions compress the structure of wages, firms may invest in the general skills of their employees. The reason is that the distortion in the wage structure turns...

Becker's theory of human capital predicts that minimum wages should reduce training investments for affected workers, because they prevent these workers from taking wage cuts necessary to finance training. We show that when the assumption of perfectly competitive labour markets underlying this...