In this paper, we analyze the transition to the labour market of participants in vocational training in Madeira Island. In a first stage, we investigate how the employment status at different dates (one month, one year, and two years after the completion of the training program) depends on...

This paper discusses a set of statistics for examining and comparing labor market dynamicsbased on the estimation of continuous time Markov transition processes. It then uses these toestablish stylized facts about dynamic patterns of movement using panel data fromArgentina, Brazil and Mexico...

This paper introduces staggered right-to-manage wage bargaining into a NewKeynesian business cycle model. Our key result is that the model is able to generatepersistent responses in output, inflation, and total labor input to both neutraltechnology and monetary policy shocks. Furthermore, we...

This paper addresses the large degree of frictional wage dispersion in US data.The standard job matching model without on-the-job search cannot replicate thispattern. With on-the-job search, however, unemployed job searchers are more willingto accept low wage offers since they can continue to...

We use individual data for Great Britain over the period 1992-2009 to compare the probabilitythat employed and unemployed job seekers find a job and the quality of the job they find. Thejob finding rate of unemployed job seekers is 50 percent higher than that of employed jobseekers, and this...

In Africa’s least developed countries (LDCs), escape from poverty and convergence to livingstandards of more advanced economies depends critically on structural transformation and theemergence of productive entrepreneurship that would accelerate growth and job creation. So far,however,...

The introduction of firm size into labor search models raises the question how wages are setwhen average and marginal product differ. We develop and analyze an alternative to theexisting bargaining framework: Firms compete for labor by publicly posting long- termcontracts. In such a competitive...

Payroll taxes represent a major distortionary influence of governments on labor markets. Thispaper examines the role of payroll taxation and the social safety net for cyclical fluctuations ina nonmonetary economy with labor market frictions and unemployment insurance, when thelatter is only...

Many countries around the world have large public pension programs with signif-icant cross-cohort redistribution. This paper provides a rationale for such programsin a lifecycle framework with search and matching frictions in the labor market. Inthe model, public pension programs alter the age...

Many countries around the world have large public pension programs. Traditionally, these programshave been used to induce retirement by the elderly in order to free up jobs for the young andto redistribute income across generations. This paper provides an efficiency rationale for the...