We propose a simple theory of under- and over-employment. Individuals of high type can perform both skilled and unskilled jobs, but only a fraction of low-type workers can perform skilled jobs. People have different non-pecuniary values over these jobs, akin to a Roy model. We calibrate two...

The recent financial crises, alongside a dramatic rise in unemployment on both sides of the Atlantic, suggest that financial shocks do translate into the labor markets. In this paper we first document that financial recessions amplify labor market volatility and Okun's elasticity over the...

In-work poverty became a prominent policy issue in the United States long before the term itself acquired any meaning and relevance in other industrialized countries. With America's embrace of an employment-centered antipoverty strategy, the working poor have become even more of an issue. This...

This paper examines the labor market trajectories of refugees who arrived in Belgium between 2003 and 2009. Belgium has offered relatively easy formal labor market access to refugees but they face many other barriers in its strongly regulated and institutionalized labor market. Using the Belgian...

Intra‐EU mobility has been the subject of debate from its very inception. Some scholars argue that intra‐EU labour migration improves the allocation of human capital in the EU and contend that the level of permanent‐type labour mobility is still too low to talk of a single European labour...

This paper proposes a matching model that distinguishes between job creation by existing firms and job creation by firm entrants. The paper argues that vacancy posting and job destruction on the extensive margin, i.e. from firms that enter and exit the labour market, represents a viable...

The working poor were long thought of as people toiling away in lousy, under-protected and underpaid jobs in places like fast-food joints, supermarkets, hotels and bars. The perfidious consequence of that perception was that in-work poverty was seen as a non-issue in countries with extensive...

This paper studies interactions between labor market institutions and unemployment dynamics in transition economies. It presents a dynamic matching model in which state sector firms endogenously shed labor and private job creation takes time. Two main conclusions arises. First, higher...