We show that greater technological progress is associated with a lower (higher) probability of worker investment in firm-specific human capital if the technology is of creative destruction (renovation) type. The impact of human capital investments on labor market outcomes depends on the type of...

This paper studies the effects of cash transfers to the poor on the labor market. This is investigated in a matching model with endogenous labor market participation and job destruction. Depending on their productivity, workers might want to stay in the job, become unemployed, or leave the labor...

Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant...