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Two firms choose locations (non-wage job characteristics) on the interval [0,1] prior to announcing wages at which they employ workers who are uniformly distributed; the (constant) marginal revenue products of workers may differ. Subgame perfect equilibria of the two-stage location-wage game are...
Persistent link: https://www.econbiz.de/10003688783
We develop an urban-search model in which firms post wages. When all workers are identical, the Diamond paradox holds, i.e. there is a unique wage in equilibrium even in the presence of search and spatial frictions. This wage is affected by spatial and labor costs. When workers differ according...
Persistent link: https://www.econbiz.de/10003656915
The theory of fiscal and regulatory competition between jurisdictions is more advanced than its empirical testing. This is particularly true of labor regulation in general, and minimum wage regulation in particular, and especially so for developing countries. This paper utilizes the spatial lag...
Persistent link: https://www.econbiz.de/10011925453
uncertainty of remittance income inflows affects the accumulation of human, physical and financial assets of Mexican households …, while accounting for the level of transfers from family abroad. We find that both the level and the uncertainty of … income hypothesis and theories of precautionary saving, a one standard deviation increase in the uncertainty of remittance …
Persistent link: https://www.econbiz.de/10010250041
surge in the stock market would be self-correcting. Recent papers have discussed the role of "uncertainty" and its … measurement in influencing economic decisions. They attempt to measure uncertainty by indexes of volatility of the stock market …, GDP, forecaster disagreement, mentions of uncertainty in news media, and the dispersion of productivity shocks to firms …
Persistent link: https://www.econbiz.de/10011543578
of uncertainty and of rationing efficiency. We show that regulatory uncertainty does not diminish the rationale for … intervention, but may require a low minimum wage that may not bind. With expected earnings-maximization, greater uncertainty widens …
Persistent link: https://www.econbiz.de/10011407940
short-time window to test the impact of deteriorating expectations and uncertainty on firms' R&D choices. Our results show a … critically shape firms' reactions to the general uncertainty. Two main patterns emerge from our analysis. On the one hand, there … persistence of R&D choices after uncertainty shocks. …
Persistent link: https://www.econbiz.de/10012705555
We examine several measures of uncertainty to make five points. First, equity market traders and executives at … nonfinancial firms have shared similar assessments about one-year-ahead uncertainty since the pandemic struck. Both the one …-year VIX and our survey-based measure of firm-level uncertainty at a one-year forecast horizon doubled at the onset of the …
Persistent link: https://www.econbiz.de/10013186704
Uncertainty affects employers' decisions on labour workforce, as it does on capital. We exploit differences on how … firms adjust their labour work-force when uncertainty increases. Using data from the Wage Dynamic Network Survey for 25 … European countries, we first construct, opposite to usual aggregate indicators, a set of uncertainty indicators exploiting …
Persistent link: https://www.econbiz.de/10012284895
the scenarios of both certainty and uncertainty. We capture the direct interest rate-hysteresis on the investments and the … of a central bank's interest rate policy, e.g. in times of low or even zero interest rates and high uncertainty, in terms …
Persistent link: https://www.econbiz.de/10012099522