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High Relocation Costs in Search-Matching Models: Theory and Application to Spatial Mismatch

Zenou, Yves - Institute for the Study of Labor (IZA) - 2007

We develop a standard search-matching model in which mobility costs are so high that it is too costly for workers to relocate when a change in their employment status occurs. We show that, in equilibrium, wages increase with distance to jobs and commuting costs because firms need to compensate...

Persistent link: https://www.econbiz.de/10005822330

Efficiency in a Search and Matching Model with Endogenous Participation

Albrecht, James; Navarro, Lucas; Vroman, Susan - Institute for the Study of Labor (IZA) - 2009

We show that in a search/matching model with endogenous participation in which workers are heterogeneous with respect to market productivity, satisfying the Hosios rule leads to excessive vacancy creation. The reason is that the marginal worker does not internalize the effect of his or her...

Persistent link: https://www.econbiz.de/10005822510

Efficiency in a Matching Model with Heterogeneous Agents: Too Many Good or Bad Jobs?

Blázquez, Maite; Jansen, Marcel - Institute for the Study of Labor (IZA) - 2003

This paper analyses the efficiency of the equilibrium allocation in a matching model with two types of workers and jobs … production technologies. Finally, in an extension we derive a tax scheme that restores efficiency and we show how workers …

Persistent link: https://www.econbiz.de/10005822529

Reported Progress under the Student Right-to-Know Act: How Reliable Is It?

Stratton, Leslie S.; Wetzel, James N. - Institute for the Study of Labor (IZA) - 2006

The Student Right-to-Know Act requires colleges to provide institution-specific information on graduation rates for students initially enrolling full-time in the fall term. Not all students, however, initially enroll full-time or in the fall term. We use longitudinal data on academic,...

Persistent link: https://www.econbiz.de/10005822562

Do Market Pressures Induce Economic Efficiency: The Case of Slovenian Manufacturing, 1994-2001

Orazem, Peter F.; Vodopivec, Milan - Institute for the Study of Labor (IZA) - 2003

longitudinal data set on all manufacturing firms in Slovenia over the period 1994-2001, this study analyzes how firm efficiency … firm efficiency occurs across almost all industries and firm types: large or small; state or private; domestic or foreign …-owned. Changes in firm ownership type have no impact on firm efficiency. Rather, competitive pressures that sort out inefficient …

Persistent link: https://www.econbiz.de/10005822655

The Rise in Obesity across the Atlantic: An Economic Perspective

Brunello, Giorgio; Michaud, Pierre-Carl; … - Institute for the Study of Labor (IZA) - 2008

economic rationales for public intervention to control obesity. We take into account equity issues as well as efficiency …

Persistent link: https://www.econbiz.de/10005822862

Is a Flat Tax Feasible in a Grown-up Welfare State?

Fuest, Clemens; Peichl, Andreas; Schaefer, Thilo - Institute for the Study of Labor (IZA) - 2007

reforms on equity and efficiency for the case of Germany. We find that a flat rate tax with a low tax rate and a low basic … allowance. But in this case the efficiency gains vanish. We conclude that, due to their limited efficiency effects and their …

Persistent link: https://www.econbiz.de/10005822885

Wage Setting in Modern Labor Markets: Neither Fair Nor Efficient

Schlicht, Ekkehart - Institute for the Study of Labor (IZA) - 2011

economic efficiency within a changing technological and social environment. Ethical evaluations of these developments diverge …, yet the view that free labor markets drive to efficiency remains undisputed. This note sets out to criticize, in a non …-technical manner, this efficiency presumption which is based on Adam Smith’s theory of wage setting. It is urged that a Smithian wage …

Persistent link: https://www.econbiz.de/10008924594

Equality, Equity and Incentives: An Experiment

Balafoutas, Loukas; Kocher, Martin G.; Putterman, Louis; … - Institute for the Study of Labor (IZA) - 2010

We devise a new experimental game by nesting a voluntary contributions mechanism in a broader spectrum of incentive schemes. With it, we study tensions between egalitarianism, equity concerns, self-interest, and the need for incentives. In a 2x2 design, subjects either vote on or exogenously...

Persistent link: https://www.econbiz.de/10008678697

Simultaneous Search and Network Efficiency

Gautier, Pieter; Holzner, Christian - Institute for the Study of Labor (IZA) - 2011

When workers send applications to vacancies they create a network. Frictions arise because workers typically do not know where other workers apply to and firms do not know which candidates other firms consider. The first coordination friction affects network formation, while the second...

Persistent link: https://www.econbiz.de/10009225759