The allocation of talent in a society is an important determinant of productivity and growth. I study the informational role of education on the allocation of talent in a two-sector model where education provides workers information about their abilities. When workers and firms are equally...

Being relatively low earners, migrants are net beneficiaries of the welfare state. Therefore, in a static setup migration may be resisted by the entire native-born population. However, it is shown that in a dynamic setup with a pension system which is an important pillar of any welfare state,...

This paper explores the determinants and stochastic properties of hiring at the aggregate, macroeconomic level. At the core of the analysis is a present value relation which defines the worker's "asset value" for the firm and determines optimal hiring. The paper validates this relation using...

In this paper, we addressed the issue of whether working whle attending high school impinges on academic performance. We formulated and empirically implemented a stylized model of grade progression through high school in which youths make sequential decisions about school attendance and work.

This paper studies the life cycle career choices of several cohorts of law school graduates from the University of Michigan. The model assumes that thses graduates act according to the optimal solution of a dynamic optimization problem in which they sequentially choose among five employment sectors.