We exploit a cohort discontinuity in the stringency of Dutch disability reforms to estimate the effects of decreased DI (disability insurance) generosity on behavior of existing recipients. We find evidence of social support substitution: individuals on average offset €1.00 of lost DI benefits...

This paper develops a framework to understand the role of interpersonal interactions in the labor market including task assignment and wages. Effective interpersonal interactions involve caring, to establish cooperation, and at the same time directness, to communicate in an unambiguous way. The...

With the growing importance of knowledge, new research questions arise that require more explicit analyses of the way human capital is produced and how it is used in the labour market. In this introduction to this special issue we provide examples of such questions and argue that economics can...