Commonly used frictional models of the labor market imply that changes in frictions have large effects on steady state employment and unemployment. We use a model that features both frictions and an operative labor supply margin to examine the robustness of this feature to the inclusion of a...

This paper analyzes the life-cycle career costs associated with child rearing and decomposes their effects into unearned wages (as women drop out of the labor market), loss of human capital, and selection into more child-friendly occupations. We estimate a dynamic life-cycle model of fertility,...

Easterlin's relative income hypothesis projects for smaller cohorts increasing wages, increasing fertility and decreasing female labor supply. This paper reviews the literature on the substitutability of female for male labor, on relative income changes as a result of changes in cohort size and...

Data on the life-cycle profiles of inequality in wages, earnings, hours worked and consumption contains precious information for answering questions about the ability of households to insure labor market risk and about the sources of this risk. This Paper demonstrates that the choice of whether...

This paper investigates the informal labour market in Russia in late 1995 and estimates a labour supply function in the informal sector using nationally representative micro-data from the Russian Longitudinal Monitoring Survey, Round VI. The findings show that the informal economy constitutes a...

We analyze the effect of changes in fertility and longevity on taxes, the composition of government spending, and productivity. To that purpose, we introduce politics in an OLG economy with endogenous growth due to human and physical capital accumulation. Population ageing shifts political power...

This paper extends Svensson and Razin's two period analysis of the Laursen-Harberger-Metzler effect to the important case where labour supply and output are variable. A terms of trade shift alters the relationship between the product and the consumption wage and so induces a change in output....

This paper extends the theory and measurement of the marginal cost of public funds (MCF) to account for labour force participation responses. Our work is motivated by the emerging consensus in the empirical literature that extensive (participation) responses are more important than intensive...

This paper explores a possible link between job security and multiple job-holding in the United Kingdom. It is argued that an individual may hold a second job if they believe that their primary job has a high risk of termination. The reason is that holding a second job may cushion the financial...

Liquidity constraints can affect self-employment in a number of ways. They can prohibit potential entrepreneurs from starting up in business, they can restrict the growth of existing entrepreneurial activities and, in the extreme, they can result in small business failure. This paper uses...