Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired workers, unlike the aggregate wage, is volatile and...

Firms select not only how many, but also which workers to hire. Yet, in standard search models of the labor market, all workers have the same probability of being hired. We argue that selective hiring crucially affects welfare analysis. Our model is isomorphic to a search model under random...

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

Over the past two decades, technological progress has been biased towards making skilled labor more productive. What does skill-biased technological change imply for business cycles? To answer this question, we construct a quarterly series for the skill premium from the CPS and use it to...

We investigate unemployment due to mismatch in the US over the past three decades. We propose an accounting framework that allows us to estimate the overall amount of mismatch unemployment as well as the contribution of the frictions that caused the mismatch. Mismatch is quantitatively important...

Wirkungsevaluationen stehen oft vor der Herausforderung, Kausalität zwischen der betrachteten neuen Politikmassnahme und den resultierenden Outcomes herzustellen. Mangelnde Vergleichbarkeit zwischen der Programmgruppe (neue Politik) und der Kontrollgruppe (Status Quo) macht oft eine kausale...

Die Nettozuwanderung nach Deutschland ist im Jahre 2013 wieder auf einen Wert gestiegen, den es zuletzt vor über einem Jahrzehnt gegeben hat. Gleichzeitig entwickelt sich aktuell eine besorgte öffentliche Debatte über die sogenannte Wohlfahrtsmigration - dabei wird unterstellt, dass Bürger...

Der Beitrag geht auf die Kabinettsfassung des Mindestlohngesetzentwurfs ein. Trotz einiger richtiger Nachjustierungen – wie zum Beispiel die Einführung einer Evaluationsklausel – bleibt der Mindestlohn ein arbeitsmarktpolitisches Großexperiment. Um die Flurschäden am Arbeitsmarkt...

The fact that unemployed workers have different abilities to smooth consumption entails heterogeneous responses to extended unemployment benefits. Our empirical exercise explores a quasi-experimental setting generated by an increase in the benefits entitlement period. The results point towards a...

This paper identifies and quantifies the contribution of a set of covariates in affecting levels and over time changes of happiness inequality. Using a decomposition methodology based on RIF regression, we analyse the increase in happiness inequality observed in Germany between 1992 and 2007,...