This paper investigates whether the minimum wage leads to inefficient job rationing. By not allowing wages to clear the labor market, the minimum wage could cause workers with low reservation wages to be rationed out while equally skilled workers with higher reservation wages are employed. This...

We develop a general equilibrium stochastic OLG model with heterogenous households. Households differ with respect to their productivity. Productivity depends stochastically on parents' unobservable investment in their child's human capital and an aggregate productivity shock. We introduce a...

Inhabitants of houses near Amsterdam Airport are complaining of noise nuisance, caused by aircraft traffic. The usual assumption is that the effect of the externality will be perfectly reflected by house price differentials. This is based on the implicit assumption that there is a...

Die deutsche Arbeitsmarktpolitik ist im Zuge der Hartz-Reformen grundsätzlich neu strukturiert und systematisch evaluiert worden. Die vorliegenden Evaluationsberichte der ersten drei Hartz-Gesetze belegen nun vielfach, welche Instrumente der aktiven Arbeitsmarktpolitik sich durch ihre...

We present a model with pre-marital schooling investment, endogenous marital matching and spousal specialization in homework and market production. Investment in schooling raises ages and generates two kinds of returns in our framework: a labor-market return and a marriage-market return because...