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This paper combines partner matching with an intra-household allocation model where couples decide if they want to marry or cohabitate. Marriage encourages but does not ensure a higher level of spousal commitment, which in turn can generate a larger marital surplus. Individuals' marital...
Persistent link: https://www.econbiz.de/10003879375
Can households make efficient choices? The fact that cohabitation and marriage are partnerships for joint production and consumption imply that their gains are highest when household members cooperate. At the same time, empirical findings suggest that spousal specialization and labor force...
Persistent link: https://www.econbiz.de/10003095433
We develop a model of the household in which spousal incomes are determined by pre-marital investments, the marriage market is characterized by assortative matching, and endogenously-determined sharing rules form the basis of intra-household allocations. By incorporating pre-marital investments...
Persistent link: https://www.econbiz.de/10003115139
reputation-conscious agents to supply a public good. Each agent chooses how much to contribute based on his own mix of public …
Persistent link: https://www.econbiz.de/10011476544
In two experiments, we examine the effects of employer reputation in an online labor market (Amazon Mechanical Turk) in … reputation, we find that good-reputation employers attract work of the same quality but at twice the rate as bad-reputation … employers. This is the first clean, field evidence on the value of employer reputation. It can serve as collateral against …
Persistent link: https://www.econbiz.de/10011387537
The undersupply of spots in German daycare facilities for toddlers challenges parents' possibilities to work. To ease the situation, the government implemented a new law entitling every child between ages one and three to daycare supervision for about four hours per day. Nevertheless, the...
Persistent link: https://www.econbiz.de/10010510511
In many markets, sellers advertise their good with an asking price. This is a price at which the seller is willing to take his good off the market and trade immediately, though it is understood that a buyer can submit an offer below the asking price and that this offer may be accepted if the...
Persistent link: https://www.econbiz.de/10009696885
In his classic article "An Essay on Bargaining" Schelling (1956) argues that ignorance might actually be strength rather than weakness. We test and confirm Schelling's conjecture in a simple take-it-or-leave bargaining experiment where the proposer can choose between two possible offers. Option...
Persistent link: https://www.econbiz.de/10009517429
We investigate the effect of search frictions on labor market sorting by constructing a model which is in line with recent evidence that employers collect a pool of applicants before interviewing a subset of them. In this environment, we derive the necessary and sufficient conditions for sorting...
Persistent link: https://www.econbiz.de/10012583359
This paper considers competitive search equilibrium in a market for a good whose quality differs across sellers. Each seller knows the quality of the good that he or she is offering for sale, but buyers cannot observe quality directly. We thus have a "market for lemons" with competitive search...
Persistent link: https://www.econbiz.de/10015050844