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...

Barriers to trade lead to significant distortions in domestic prices and cause an inefficient allocation of resources across sectors. An expected outcome of a trade reform is a significant sectoral reallocation of labor in the economy. The amount and speed of the reallocation, however, will also...

In this paper we document substantial returns to occupational tenure. Everything else being constant, ten years of occupational tenure are likely to increase wages by at least $19\%$. Moreover, we show that when occupational experience is taken into account, tenure with an industry or an...

There is a negative mean-dispersion relationship between the log of mean annual hours in an occupation and the standard deviation of log annual hours in that occupation. We document this pattern using data from the 1976-2011 Current Population Survey (CPS) and various Survey of Income and...