Relying on the non-negligible role played by the underground economy in the labour market fluctuations, this paper extends the standard matching model à la Mortensen-Pissarides by introducing an underground sector along with an endogenous sector choice for both entrepreneurs and workers. These...

This paper develops a labour market matching model in order to address the problem of the persistence of the hidden sector and of its regional concentration, as in Italy and in the enlarged Europe. The main novel features of the model are that entrepreneurial ability affects job productivity,...

An extensive empirical literature has documented that workers with high tenure suffer large and persistent earnings losses when they get displaced. We study the reasons behind these losses in a tractable search model with a life-cycle dimension, endogenous job mobility, worker- and...

This study contributes to the explanation to growing informality by proposing and testing a simple framework that link income insecurity to the proliferation of informal enterprise through job insecurity in selected SSA countries. The study adopted a quantitative approach and used ANOVA analysis...

In this paper, we explore the fluctuations of unemployment and vacancies in the Italian labour market over the last twenty years. For reasons of data availability on unfilled job openings, this period is split in two parts. The former is covered by a help-wanted time series, while the latter is...

This investigation employs dynamic panel analysis to provide new insights into the phenomenon of adaptation. Using the British Household Panel Survey, it is demonstrated that happiness is largely (but not wholly) contemporaneous. This can help provide explanations for previous findings, where...

This article makes use of a unique personnel data set to explore job separation behavior among workers who qualify for theWork Opportunity Tax Credit (WOTC). Results indicate that WOTC workers do not exhibit overall higher turnover than similar non-WOTC workers. The tenures of the two groups...

In light of the recent and growing literature which has extended the use of search and matching models even to the housing market, this paper introduces dynamic analysis to a simple stationary state equilibrium model. Contrary to what occurs in the labour market, the dynamic adjustment to...

This technical note aims to provide a practical overview of the labour market’s benchmark macroeconomic models. The matching models are the primary and most popular theoretical tools used by economists to evaluate various labour market policies and to study the problem of unemployment. These...

In this paper we build an integrated framework of the labor market in which worker replacement, job creation and job destruction are decided simultaneously at the firm level, providing a rigorous instrument for the analysis of worker flows. The main features of the model are uncertainty related...