Then, we build a theory of labor supply with heterogeneous agents consistent with these empirical facts.  The key features of the model are life-cycle, incomplete markets, nonlinear wage schedules, an intensive and extensive margin in labor supply, and a social security system.  We calibrate...

In this paper, we first use household survey data to documents facts on the heterogeneity and life-cycle dynamics of labor supply across many European countries and the U.S. We also document a substantial variation in the out-of-pocket medical expenses faced by individuals across countries. We...

The rapidly growing literature studying the returns to firm- and government-sponsored training has made a striking observation. Returns to firm-sponsored training are positive and large while returns to government-sponsored training are low or even negative, especially in the short run. This has...

This paper has three contributions. First, we document various facts about the labor supply decisions of men and women in the US over their life-cycle. For cohorts of male and female individuals in the PSID, we study the life-cycle profile of average hours worked, the variance of log hours, and...

This paper examines the role of social skills, as distinct from standard wage-determining human capital, in determining economic outcomes in labor and marriage markets. Social skill, or social capacity, is understood in our framework as the ability to maintain long-term relationships, whether...

In this article we argue that wage inequality and occupational mobility are intimately related. We are motivated by our empirical findings that human capital is occupation specific and that the fraction of workers switching occupations in the U.S. was as high as 16% a year in the early 1970's...

In this paper I highlight the importance of incorporating the institutional features of local labour markets into the analysis of trade reforms. A trade reform is often deemed beneficial because the elimination of trade barriers allows labour to reallocate towards those sectors in the economy in...