This paper evaluates the wage effects of a tax credit policy on new hirings in Southern Italy. We use high-quality administrative data and propose a latent class inverse probability weighting method as a strategy to account for workers' unobserved heterogeneity. We find an unexpected negative...

Australia, since the early 1980s, has been a leading advocate and practitioner of the neo-liberal economic model, also known as the Anglo-Saxon (or Anglo-American) model due to its geographical origins in the UK and the US, and its subsequent ascendancy in Australia, New Zealand and Canada,...

Previous research on wage penalty for temporary workers has focused on the conditional mean model. This paper uses micro data from the 2006 wave of the Survey of Italian Households’ Income and Wealth (SHIW) to examine the wage gap between temporary and permanent workers across the whole wage...

The Chinese labour market has undergone an extensive restructuring in the last four-and-a-half decades, following the start of the economic reforms, and the open door policy for foreign investment in 1978, under the leadership of Deng Xiaoping. The nature of employment contracts, labour market...

We show that a minimum wage can have large effects throughout the earnings distribution, using a combination of theory and empirical evidence. To this end, we develop an equilibrium search model featuring empirically relevant worker and firm heterogeneity. We use the estimated model to evaluate...

During 2021 and 2022 many news media outlets have been reporting that millions of workers in the US have been quitting their jobs in record numbers. In a global economy rebounding from the economic downturn caused by the Covid-19 outbreak and demanding more workers, a high rate of resignations...

This paper studies the wage gap according to the formality status of workers, as well as the determinants of informal employment in the Dominican Republic. Estimates are made using microdata from the National Labor Force Survey, applying the Blinder-Oaxaca decomposition together with a recent...

Using a simple game-theoretical model, this paper provides a new explanation for why large firms in developing economies may willingly pay higher wages than market wage rate. We show that large firms can strategically create entry barriers to the modern sector by setting high wage standards....

The labor market in developing countries is remarkably heterogeneous with a small productive formal sector, enjoying high wages and attractive employment conditions and another large informal sector with low productivity and volatile wages. The informal sector is particularly diverse. In this...

China’s entry into the world trade, investment and production system and the economic growth of the last four decades have culminated in a rigid labour market duality that is based on the division of the urban-rural residential registry system, hukou. A migrant labour population has been...