In this paper, we analyse the organization of the labour market in a general equilibrium model of a closed economy with two industries and two types of labour input. Workers are organized in industry- and skill-specific unions. The wage is set in cooperation either between identical labour types...

This paper challenges the traditional view that unemployment is high because insiders determine the union wage. The insiders in this paper are characterized by being more efficient when they search for a job than the outsiders, implying that they experience relatively less unemployment. We...

The labour force participation rate of married women varies considerably between the European countries. There may be several explanations for this evidence. In this study, the effect of the different income tax schemes on female labour force participation is investigated and compared. A common...

Specification and extimation of a burdett-mortensen type equilibrium search model is considered. The estimation problem is nonstandard. An estimation strategy asymptotically equivalent to maximum likelihood is proposed and applied.

We extend the basic equilibrium search model of Burdett-Mortnesen with a human capital accumulating wage function and solve for the new equilibrium distribution of wages. We find an equilibrium distribution of earned wages with no upper bound of the support and with density having a decreasing...

Orthogeodesic models admit marginal local cuts and therefore separate inference on subparameters is asymptotically justified. Doubly-flat orthogeodesic models admit local cuts marginally and conditionally. Two important empirical models for panel data are used to illustrate this property and...

This paper analyzes the costs and benefits of job rotation as a mechanism through which the firm learns about the employees' productivities and the profitability of different jobs or activities. We compare job rotation to an assignment policy where employees specialize in one job along their...

The correlated gamma-frailty model is a generalization of Cox' proportional hazard model, which allows for correlation between individuals within the same group. The nonparametric maximum likelihood estimator in this model has previously been studied by Murphy (1994, 1995) and Parner (1998)....

This paper considers the effect of a productivity shock when the unemployed worker risks a loss of skill. This divides the workers into short-term and long-term unemployment. In this economy, the short-term unemployed and long-term unemployed in the economy search for employment in the most...

In this paper, we investigate what affects school attendance and child labour in an LDC, using data from Zambia. We find some support for the hypothesis that poverty forces households to keep their children away from school.