Critically examines the 1993‐reform in the Disablement Act for employees in The Netherlands. Demonstrates that the new measures, which are mainly directed at lowering the benefit and at limiting the duration, are not as effective in reducing expenditures in this field as they were meant to be....

In this paper two wage observations which relate to the same point in time will be compared and the differences analyzed. The OSA-labor market survey contains information about wages received in April 1985 as reported in April 1985 and as reported in October 1986 by the same respondents. Large...

The risk of investment in schooling has largely been ignored. We mimic the investment decision facing a student and simulate risky earnings profiles in alternative options, with parameters taken from the very limited evidence. The distribution of rates of return appears positively skewed. Our...

The analysis of football transfers is hampered by selectivity bias. In most empirical estimations, simple regression is used and selectivity is ignored. In this article we propose an estimation method that corrects for sample selectivity and allows the use of more observations in a simple...

In the Netherlands auditors can be trained in a part-time educational track in which students combine working and studying or in a full-time educational track. The former training is relatively firm-specific whereas the latter training is relatively general. Applying human capital theory, we...

This paper analyzes the search decision of employees empirically. A maximum likelihood model consisting of a wage equation and a search equation, in which the difference between the present and the nonobserved alternative (market) wage is included, is estimated to investigate the importance of...

We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of...