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Do employers and workers underbid prevailing wages if there is unemployment? Do employers take advantage of workers’ underbidding by lowering wages? We hypothesize that under conditions of incomplete labor contracts wage levels may positively affect workers’ propensity to cooperate. This, in...
Persistent link: https://www.econbiz.de/10005076549
This paper investigates the relationship between bilateral FDI positions and cross-country business cycle correlations in the period 1982–2001. We find that countries that have comparatively intensive FDI relations also have more synchronized business cycles during 1995–2001. Before 1995, we...
Persistent link: https://www.econbiz.de/10005076717
Foreign-owned firms account for a significant part of output in many industrialized countries. However, compared to international trade linkages, relatively little is known about the role of foreign direct investment linkages and multinational firm behavior in the transmission of disturbances...
Persistent link: https://www.econbiz.de/10005126285
Aggregate productivity growth can be decomposed into growth within establishments, between establishments, and the impact of entering and exiting establishments. We demonstrate that such a productivity decomposition formula can also be used for studying intraestablishment restructuring through...
Persistent link: https://www.econbiz.de/10005408335
Due to a tax law implemented in 1998, Dutch employers can claim an extra tax deduction when they train employees aged 40 years or older. This causes a discontinuity in a firm's cost of training an employee. We exploit this discontinuity to identify two effects: the effect of the tax deduction on...
Persistent link: https://www.econbiz.de/10005125714
We examine how much of the observed wage dispersion among similar workers can be explained as a consequence of a lack of coordination among employers. To do this, we construct a directed search model with homogenous workers but where firms can create either good or bad jobs, aimed at either...
Persistent link: https://www.econbiz.de/10005126186
In this paper, we study the return to human capital variables for wages of workers observed in Tunisian matched worker-firm data in 1999. This tells us how returns to human capital in a Less Developed Country like Tunisia differ from the industrial countries usually studied with matched data. We...
Persistent link: https://www.econbiz.de/10005408310
I study the consequences of heterogeneity of skills for the design of an optimal unemployment insurance, using a … different productivities or skills, are employed by firms offering wages that depend both on the agents’ individual skill level … during unemployment due to depreciation of skills and increases on the job because of learning by doing. Any insurance …
Persistent link: https://www.econbiz.de/10005408328