We measure labor market frictions using a strategy that bridges design-based and structuralapproaches: estimating an equilibrium search model using reduced-form minimum wageelasticities identified from border discontinuities and fitted with Bayesian and LIML methods.We begin by providing the...

This paper examines the interaction between minimum wage legislation and tax evasion byemployed labor. I develop a model in which firms and workers may agree to report less thanthe true amount of earnings to the fiscal authorities. I show that introducing a minimum wagecreates a spike in the...

This paper examines an economic union where oligopolistic firms produce by skilled andunskilled labor and do in-house R&D by skilled labor. The planner of the union accepts newmembers to the union, regulates the labor market through a minimum wage for unskilledlabor and supports firms by...

In-work benefits are becoming an increasingly relevant labour market policy, graduallyexpanding in scope and geographical coverage. This paper investigates the equilibriumimpact of in-work benefits and contrasts it with the traditional partial equilibrium analysis. Wefind under which conditions...

In view of the demographic trends, most EU countries face the problem of a declining workforce in the future. Understanding the interaction between income support systems (such asunemployment benefits, social assistance, early retirement and pension systems) and totallabor supply is of crucial...

The minimum wage rate has been introduced in many countries as a means of alleviating thepoverty of the working poor. This paper shows, however, that an imperfectly enforcedminimum wage rate causes small firms to face an upward-sloping labor supply schedule.Since this turns these firms into...

We study differences in the adjustment of aggregate real wages in the manufacturing sectorover the business cycle across OECD countries, combining results from different data anddynamic methods. Summary measures of cyclicality show genuine cross-countryheterogeneity even after controlling for...

We analyze the following questions associated with flexible outsourcing under partlyimperfect dual domestic labour markets, where high skilled workers participate in firm’s profitvia profit sharing: How does the implementation of profit sharing influence flexibleoutsourcing? What is the...

We use Lithuanian, Latvian and Estonian LFS data (2002-2007) complemented with severalother surveys to compare the profile of Baltic temporary workers abroad before and after EUaccession with that of stayers and return migrants. Determinants of migration and return, aswell as selection issues...

This paper focuses on the links between informal care provision and labour market activity atthe sub-national level. Within-country analysis of this issue has been very limited to datedespite the wide regional variations in informal care provision that often exist. This issue isimportant in the...