We provide new cross-country evidence on smoking persistence in Europe, which can be due to both true state dependence and individual unobserved heterogeneity. We distinguish between the two by using semi-parametric panel data selection methods, applied to both the smoking participation and the...

This paper analyzes collective bargaining using Spanish firm level data. Central to the analysis are the joint determination of wage and strike outcomes in a dynamic framework and the possibility of segregate wage equation for strike and non-strike outcomes. Conditional to strikes taking place,...

The paper focuses on a labour market dominated by a public sector where the links between pay and effort are weak, as in many developing countries. This feature is incorporated in an extension of the basic Shapiro-Stiglitz model of shirking in order to explain the coexistence of high wages (in...