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The Effect of Information on Market Activity; Evidence from Vehicle Recalls

van den Bijgaart, Inge; Cerruti, Davide - 2020

We evaluate the effect of vehicle recalls on vehicle transactions in the second-hand market. Using a rich dataset of … Dutch vehicle registrations, we exploit the quasi-experimental variation in recalls across nearly-identical cars. We find … increase (decrease) in transactions after a recall. Based on our theoretical model, this suggests that recalls increase sorting …

Persistent link: https://www.econbiz.de/10012314923

Structural Adjustment and Endogenous Worker Recall Probabilities

Meland, Frode; Torsvik, Gaute - 2002

In this paper we investigate the incentives of unemployed workers to wait for a recall when recall probabilities are endogenously determined by the waiting decisions of others. Because of a positive externality that arises when workers seek new employment, an excessive number of workers choose...

Persistent link: https://www.econbiz.de/10010315322

Subsidies for wages and infrastructure: how to restrain undesired immigration

Fenge, Robert; Meier, Volker - 2006

This paper investigates regional or international transfers as a means to prevent immigration into unemployment. We analyze a two-country model with free migration in which the rich country is characterized by minimum wage unemployment. Matching grants for investment in infrastructure are...

Persistent link: https://www.econbiz.de/10010263931

How do extended benefits affect unemployment duration?: A regression discontinuity approach

Lalive, Rafael - 2006

This paper studies a program that extends the maximum duration of unemployment benefits from 30 weeks to 209 weeks. Interestingly, this program is targeted to individuals aged 50 years or older, living in certain eligible regions in Austria. In the evaluation, I use sharp discontinuities in...

Persistent link: https://www.econbiz.de/10010263951

Pareto-improving unemployment policies

Lingens, Jörg; Wälde, Klaus - 2006

We investigate how continental European unemployment can be reduced without reducing unemployment benefits and without reducing the net income of low-wage earners. Lower unemployment replacement rates reduce unemployment, the net wage and unemployment benefits. A lower tax on labour increases...

Persistent link: https://www.econbiz.de/10010263984

Testing theories of job creation: does supply create its own demand?

Carlsson, Mikael; Eriksson, Stefan; Gottfries, Nils - 2006

Although search-matching theory has come to dominate labor economics in recent years, few attempts have been made to compare the empirical relevance of search-matching theory to efficiency wage and bargaining theories, where employment is determined by labor demand. In this paper we formulate an...

Persistent link: https://www.econbiz.de/10010264032

Equilibrium unemployment with outsourcing under labour market imperfections

Koskela, Erkki; Stenbacka, Rune - 2007

We study the various consequences of and the incentives for outsourcing. We argue that the wage elasticity of labour demand increases as a function of the share of outsourcing, which is a result consistent with existing empirical research. Furthermore, we show that a production mode with a...

Persistent link: https://www.econbiz.de/10010264053

Unemployment and gang crime: could prosperity backfire?

Poutvaara, Panu; Priks, Mikael - 2007

Empirical evidence reveals that unemployment tends to increase property crime but that it has no effect on violent crime. To explain these facts, we examine a model of criminal gangs and suggest that there is a substitution effect between property crime and violent crime at work. In the model,...

Persistent link: https://www.econbiz.de/10010264089

Exports, unemployment and the welfare state

Janeba, Eckhard - 2007

The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With flexible labor markets, a fall in foreign market entry cost tends to generate more income inequality. By contrast, when workers cannot easily switch industries and wages are...

Persistent link: https://www.econbiz.de/10010264115

Equilibrium unemployment with outsourcing and wage solidarity under labour market imperfections

Koskela, Erkki; Stenbacka, Rune - 2007

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage dispersion between the high-skilled and low-skilled...

Persistent link: https://www.econbiz.de/10010264123

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