This paper develops a search and matching model with hierarchical firms, human capital accumulation, internal promotions and on-the-job search. At the time of their market entry firms maximize present value of profits with respect to their promotion rule. Workers who are eligible for promotion...

While there is a wealth of literature dealing with the spatial nature of knowledge and its transferral, I argue that the underlying mechanisms have not been sufficiently understood. Existing research relating the geography of inflows to firm productivity does not adequately address firm and...

Recently migration patterns in the euro area changed markedly in response to increasing unemployment disparities. This reinforced the interest in labor mobility as stabilization tool against the background of heterogeneous labor market conditions. In a data set of 55 bilateral migration...

Recent theoretical and empirical models of job search and job matching include on-the-job search as one of the relevant variables and implicitly or explicitly assume that on-the-job search increases in periods of growth and decreases in economic downturns. Because of lack of suitable data,...

Standard program evaluations implicitly assume that individuals are perfectly informed about the considered policy change and the related institutional rules. This seems not very plausible in many contexts, as diverse examples show. However, evidence on how incomplete information affects the...

The present paper describes the modelling of regional labour markets in the newly developed dynamic spatial general equilibrium model RHOMOLO, where the labour market equilibrium is determined by firms' labour demand, a wage-curve determining unemployment, and interregional labour migration. The...

Empirical studies show that women are under-represented in highly paid top management positions of firms (glass-ceiling effect) which could be a cause of the gender wage gap. In order to study women's career paths, we develop a search and matching model where job ladders consist of three...

The abolishment of passport and any other type of border controls at the German-Polish and German-Czech border in December 2007 provoked public concerns that open border would increase cross-border crime. Despite these widespread concerns, there is still little research on whether the public...

The study contributes in analytical description of spatial diffusion of fertility, in particular, influenced by labour movements of people between places of residence and work. It is assumed that the labour market has externality on the marriage market due to commuting, which, in turn, affects...

In the light of new theoretical and empirical work on the Permanent Income Hypothesis we tackle earlier findings for German data, which reject its validity given a large fraction of liquidity constrained consumers. Starting from a standard short run approach we do not find evidence for excess...