This paper characterizes efficient labor-market allocations in a labor selection model. The model's crucial aspect is …

elasticity of substitution production function and the endogenous labor supply of three different skill types, which enable us to … isolate the impact of capital-skill complementarity (i.e., demand effects) and varying skill-specific labor supply (i …

The paper studies wage and employment determination in the Swedish business sector from the mid-1910s to the late 1930s … by a period of sharp deflation where nominal wages and prices fell by 30 percent and unemployment increased from 5 to 30 … percent. We examine whether relatively standard wage and employment equations can account for the volatile economic …

As skills of labor-market entrants are usually not directly observed by employers, individuals acquire skill signals …-resource managers to choose. We find that signals in all three studied domains – cognitive skills, social skills, and maturity – have a …. While GPAs and social skills are significant for both genders, males are particularly rewarded for maturity and females for …

) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment …This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework where (voluntary … elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the participation …

employment prospects. We rely on exact matching to compare workers displaced due to firm closure with similar non …-displaced workers. We then use a difference-in-difference strategy to analyze employment and earnings of older relative to prime … lower re-employment probabilities as compared to prime-age workers but later they catch up. While among the young the …

low-type workers have become increasingly sorted into low-type firms over time, especially out of unemployment. This …

The introduction of firm size into labor search models raises the question how wages are set when average and marginal … product differ. We develop and analyze an alternative to the existing bargaining framework: Firms compete for labor by …

determine employment. Unions raise the efficiency costs of income redistribution, because unemployment benefits and income taxes …This paper extends the Diamond (1980) model with labor unions to study optimal income taxation and to analyze whether … raise wage demands and thereby generate involuntary unemployment. Optimal unemployment benefits and optimal income taxes are …