We build and test a model of how the growth of public jobs with wage premiums may help to explain the high and potentially inefficient level of urbanization in LDCs. Public jobs comprise about 40% of non- agricultural employment in LDCs, and have frequently offered substantial wage premiums. The...

Workers will not pay for general on-the-job training if contracts are not enforceable. Firms may if there are mobility frictions. Private information about worker productivities, however, prevents workers who quit receiving their marginal products elsewhere. Their new employers then receive...

This paper develops a new simulation estimation algorithm that is particularly useful for estimating dynamic panel data models with unobserved endogenous state variables. The new approach can deal with the commonly encountered and widely discussed ``initial conditions problem,'' as well as the...