In this paper we adopt a three-state representation of the labour market (employment, unemployment, and inactivity). Using individual -level data from EU-SILC (European Union - Statistics on Income and Living Conditions) survey from three countries (France, Italy, Spain), we analyze the...

This paper focuses on changes in the Italian labour market over the decade 1993-2003. We estimate both aggregate transition matrices and micro-level multinomial logistic regression models to analyse flows between labour market states and their determinants. We aim to assess whether labour market...

This paper surveys recent work in equilibrium models of labor markets characterized by search and recruitment frictions and by the need to reallocate workers across productive activities. The duration of unemployment and jobs and wage determination are treated as endogenous outcomes of job...

A “constant” wage is pair-wise inefficient in a standard search model when workers endogenously separate from employment. We derive a pair-wise efficient employment contract that involves workers paying a hiring fee (or bond) upon the formation of a match. We estimate the constant wage and...