The paper draws upon the work of T.W. Schultz to show that human capital theory andlabor market adjustments have important implications for investing in people for the 21st Century.[...]

This study analyzes whether economic conditions at the time of labor market entry affect entrepreneurship, using difference in business start-ups between cohorts of college students graduating in boom or bust economic conditions. Those graduating during an economic bust tend to delay their...

In a dynamic model of the labor market with moral hazard, equilibriumlayoff is modeled as termination of an optimal long-term contract. Termination,together with compensation (current and future), is used as an incentive deviceto induce worker efforts. I then use the model to study analytically...

Food products containing genetically modified (GM) ingredients have entered themarket over the past decade. The biotech industry and environmental groups have disseminatingconflicting private information about GM foods. This paper develops a unique methodology forvaluing independent third-party...

Many countries around the world have large public pension programs with signif-icant cross-cohort redistribution. This paper provides a rationale for such programsin a lifecycle framework with search and matching frictions in the labor market. Inthe model, public pension programs alter the age...

In an equilibrium model of the labor market, workers and firms enter intodynamic contracts that can potentially last forever, but are subject to optimalterminations. Upon termination, the firm hires a new worker, and the workerwho is terminated receives a termination contract from the firm and...

The primary focus of this paper is the impact of knowledge creation and innovative activity onnon-farm employment growth. Non-farm employment growth is modeled in a stylized modelwhere new knowledge and local economic externalities are key factors driving technologygrowth. For our empirical...

The transition to market in Slovenia created labor displacements that were on par or greater than thatexperienced in North America in the 1980s. A simple theoretical model suggests that factors which raisethe probability of layoff should also increase the probability of a quit, predictions that...

Using a unique sample of new Ph.D. economists in 1987 and 1997, we examine how jobseekers and their employers alter their search strategies in strong versus weak markets. The 1987academic market was strong while the 1997 market was much weaker. A multimarket theory ofoptimal search suggests that...