In this paper we use a novel approach and a large Portuguese employer-employee paneldata set to study the hypothesis that industrial agglomeration improves the quality of the firmworkermatching process. Our method makes use of recent developments in the estimationand analysis of models with...

The model of compensating differentials in regional labor markets was developed by Roback(1982). The model interprets regional differences in constant quality wages and rents ascompensating firms and residents for inter-regional differences in amenities. The modelassumes that the costs of...

In this paper we show that the recent model by Duranton (AER, 2007) performs remarkablywell in replicating the city size distribution of West Germany, much better than the simplerank-size rule known as Zipf´s law. The main mechanism of this theoretical framework is thechurning of industries...

This paper provides a simple theory of geographical mobility which simultaneously explainspeople’s choice of residences in space and the location of industry. Residences are chosenon the basis of the utility which mobile households obtain across locations...

This paper provides a longitudinal perspective on changes in Spanish male earnings inequality for the period 1993-2000, by decomposing the earnings covariance structure into its permanent and transitory parts. According to the Spanish sample of the European Community Household Panel,...

This paper investigates the evolution of earnings inequality in urban China from 1989 to2006. After decomposing the variance of log of earnings into transitory and permanent twoparts, we find that both components are important contributors to the total variance ofearnings. We also find that the...

This study analyses the development of the economic well-being of the elderly in Swedensince 1990 - a period characterized by increased influence from the financial market andextreme economic events - using data from the Household Income Survey. The elderly werenot isolated as pensions were cut,...

This paper proposes a new unified theory of sociobehavioral forces. The goal of the new theory isto integrate theories describing five sociobehavioral processes - comparison (including justiceand self-esteem), status, power, identity, and happiness - bringing under a single theoreticalumbrella...

Was the increase in income inequality in the US due to permanent shocks or merely to anincrease in the variance of transitory shocks? The implications for consumption and welfaredepend crucially on the answer to this question. We use CEX repeated cross-section data onconsumption and income to...

This paper develops a framework for studying individuals ideas about what constitutes justcompensation for chief executive officers (CEOs) and reports estimates of just CEO pay andthe principles guiding ideas of justice. The sample consists of students pursuing a Master ofBusiness Administration...