We study the effects of local status, where workers compare their wage to the wage of other workers within the same firm. We assume a competitive labor market with unobservable effort, where firms condition wages on output as incentive for effort. If workers who care about status are also more...

The paper analyses the impact of health and survival uncertainty on the saving and consumption decisions of retirees.

The paper provides a general equilibrium analysis in which individual decisions determine the aggregate divorce rate and are influenced by it. Reinforcement is caused by search frictions and a meeting technology whereby remarriage is more likely if the divorce rate is higher, implying multiple...

This paper develops a descriptive methodology for the analysis of wage growth of immigrants, based on human capital theory. The sources of the wage growth are : (i) the rise of the return to imported human capital; (ii) the impact of accumulated experience in the host country; and, (iii) the...

This paper analyzes the process of entry into the Israeli labor market among a panel of highly skilled immigrants who moved from the former USSR to Israel. We estimate a nonstationary, finite horizon search model with exogenous wage growth that is capable of capturing the main features of this...

This paper analyzes the recent mass immigration from the USSR to Israel. We examine three interrelated features of the assimilation process; the rise in the productive capacity of immigrants as they gradually adapt to the Israeli labor market, the rising rewards that immigrants receive for their...

The paper provides a general equilibrium analysis in which individual decisions determine the aggregate divorce rate and are influenced by it. Reinforcement is caused by search frictions and a meeting technology whereby remarriage is more likely if the divorce rate is higher, implying multiple...