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...

Portuguese firms engage in intense reallocation, most employers simultaneously hire andseparate from workers, resulting in a large heterogeneity of flows and excess turnover. Largeand older firms have lower flows, but high excess turnover rates. In small firms, hires andseparations move...

We use individual data for Great Britain over the period 1992-2009 to compare the probabilitythat employed and unemployed job seekers find a job and the quality of the job they find. Thejob finding rate of unemployed job seekers is 50 percent higher than that of employed jobseekers, and this...

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 explore whether finance influences the impact of labour market institutions onunemployment. Using a data set of 18 OECD countries over 1980-2004, we estimate a panelVectorAutoRegressive model. We check whether causalities from labour market variables tounemployment are affected by financial...

We combine profit sharing and outsourcing, if the wage for worker is decided by a labor unionto analyze how does the implementation of profit sharing affect individual effort and thebargained wage and thus outsourcing? We find that profit sharing and the wage level havean individual...

We analyze how an entry regulation that imposes a mandatory educational standard affectsentry into self-employment and occupational mobility. We exploit the German reunification asa natural experiment and identify regulatory effects by comparing differences betweenregulated occupations and...

When workers send applications to vacancies they create a network. Frictions arise becauseworkers typically do not know where other workers apply to and firms do not know whichcandidates other firms consider. The first coordination friction affects network formation, whilethe second coordination...

The introduction of firm size into labor search models raises the question how wages are setwhen average and marginal product differ. We develop and analyze an alternative to theexisting bargaining framework: Firms compete for labor by publicly posting long- termcontracts. In such a competitive...

Payroll taxes represent a major distortionary influence of governments on labor markets. Thispaper examines the role of payroll taxation and the social safety net for cyclical fluctuations ina nonmonetary economy with labor market frictions and unemployment insurance, when thelatter is only...