Labor market policies succeed or fail at least in part depending on how well they reflect or account for behavioral responses. Insights from behavioral economics, which allow for realistic deviations from standard economic assumptions about behavior, have consequences for the design and...

This note examines the balance of activation strategies in OECD countries, where this type of policy approach has a long tradition. Countries share the objective of strengthening employment and reducing benefit dependency and vulnerability among the working-age population, but the balance of...

Skills are a central source of high productivity and economic well-being. But what do we mean by productive skills? Both with regard to measurement and policy, the primary focus in the U.S. has been on academic skills, as measured by tests of reading, writing and math abilities and by...

The purpose of the paper is to analyse how labour market and labour market institutions reacted during recent crises. In early 1990s Estonia introduced a set of rather unique policy options like currency board as a ground for monetary policy, low taxes, open foreign trade policy, low public...

The Danish model won fame for its performance during the 1990s and the beginning of the 2000-years and took a position as a model for the European Employment Strategy and a much cited example of a real life flexicurity model. Like most other European countries Denmark has now fallen into a deep...

This article characterizes the properties of the compensation scheme of delegated portfolio management that would lead to the selection of high risk-high return portfolios. In particular, it provides conditions under which a non-monotone payment structure emerges as an optimal contract, which...

Management meted out punishment to enforce rules and encourage adherence. However, the effectiveness depended on how the employees perceive and interpret the policy. This study tested the effect of reducing individual lateness in a plastic factory. Field experiment was conducted to test the...