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Labor market policy evaluation in equilibrium : some lessons of the job search and matching model

Cahuc, Pierre (contributor); … - 2008

We analyze the consequences of counseling provided to job seekers in a standard job search and matching model. It turns out that neglecting equilibrium effects induced by counseling can lead to wrong conclusions. In particular, counseling can increase steady state unemployment although counseled...

Persistent link: https://www.econbiz.de/10003755519

Transparency, inequity aversion, and the dynamics of peer pressure in teams : theory and evidence

Mohnen, Alwine (contributor); Pokorny, Kathrin (contributor) - 2008

We provide an explanation for peer pressure in teams based on inequity aversion. Analyzing a two-period model with two agents, we find that the effect of inequity aversion strongly depends on the information structure. When contributions are unobservable, agents act as if they were purely...

Persistent link: https://www.econbiz.de/10003652683

Optimal taxation and monopsonistic labor market : does monopsony justify the minimum wage?

Cahuc, Pierre (contributor); Laroque, Guy (contributor) - 2007

We analyze optimal taxation in an economy with monopsonistic labor markets. The individuals, whose only decisions are whether to work, or not, have heterogeneous productivities and opportunity costs of work. Given its preferences for redistribution, the government, which does not observe the...

Persistent link: https://www.econbiz.de/10003608451

Should you allow your agent to become your competitor? : On non-compete agreements in employment contracts

Kräkel, Matthias (contributor); Sliwka, Dirk (contributor) - 2006

We discuss a principal-agent model in which the principal has the opportunity to include a non-compete agreement in the employment contract. We show that not imposing such an agreement can be beneficial for the principal as the possibility to leave the firm generates implicit incentives for the...

Persistent link: https://www.econbiz.de/10003301668

Produce or speculate? : asset bubbles, occupational choice and efficiency

Cahuc, Pierre; Challe, Edouard - 2009

We study the macroeconomic effects of rational asset bubbles in an overlapping-generations economy where asset trading requires specialized intermediaries and where agents freely choose between working in the production or in the financial sector. Frictions in the market for deposits create...

Persistent link: https://www.econbiz.de/10003926432

Explaining the spread of temporary jobs and its impact on labor turnover

Cahuc, Pierre; Charlot, Olivier; Malherbet, Franck - 2012

This paper provides a simple model which explains the choice between permanent and temporary jobs. This model, which incorporates important features of actual employment protection legislations neglected by the economic literature so far, reproduces the main stylized facts about entries into...

Persistent link: https://www.econbiz.de/10009531343

Universities as stakeholders in their students' careers : on the benefits of graduate taxes to finance higher education

McKenzie, Tom; Sliwka, Dirk - 2010

We examine ways of funding higher education, comparing upfront tuition fees with graduate taxes. The tax dominates, as volatility in future income is transferred from risk-averse students to the risk-neutral state. However, a double moral hazard problem arises when students' efforts to raise...

Persistent link: https://www.econbiz.de/10009303444

Temporary jobs, employment protection and labor market performance

Cahuc, Pierre; Postel-Vinay, Fabien - 2001

Many European labor markets are characterized by heavy employment protection taxes and the widespread use of fixed-duration contracts. The simultaneous use of these two policy instruments seems somewhat contradictory since the former primarily aims at limiting job destruction whereas the latter...

Persistent link: https://www.econbiz.de/10011391776

Labor market efficiency, wages and employment when search frictions interact with intrafirm bargaining

Cahuc, Pierre; Wasmer, Etienne - 2001

In search of a macroeconomic theory of wage determination, the agnostic reader should be puzzled by the apparent … contradiction between two influential theories. On one hand, in the standard search-matching theory with wage bargaining, hiring … overemployment or to under-employment compared with the first-best. On the other hand, in Stole and Zwiebel's theory of intrafirm …

Persistent link: https://www.econbiz.de/10011401500

Job protection, minimum wage and unemployment

Cahuc, Pierre; Zylberberg, André - 1999

We analyze how wage setting institutions and job-security provisions interact on unemployment. The assumption that wages are renegotiated by mutual agreement only is introduced in a matching model with endogenous job destruction - la Mortensen and Pissarides (1994) in order to get wage profiles...

Persistent link: https://www.econbiz.de/10011318147