This paper develops a model in which workers are heterogeneous in their intrinsic motivation to work at a firm. We characterise optimal incentive schemes and examine how the firm can attract and select highly motivated workers to fill a vacancy when workers’ motivation is private information....

The prevailing labor market models assume that minimum wages do not affect the labor supply schedule. We challenge this view in this paper by showing experimentally that minimum wages have significant and lasting effects on subjects' reservation wages. The temporary introduction of a minimum...

The process leading to the setting of the minimum wage so far has been fairly overlooked by economists. This paper suggests that this is a serious limitation as the setting regime contributes to explain cross-country variation in the fine-tuning of the minimum wage, hence in the way in which the...

This paper investigates a puzzle in the literature on labor markets in developing countries: labor legislations not only have an impact on the formal labor market but also an impact on the informal sector. It has even been argued that the impact on the informal sector in the case of the minimum...

Ob die Marktform des Monopsons am Arbeitsmarkt vorliegt, ist fur die Frage des Für oder Wider des Mindestlohns von essentieller Bedeutung. Denn in der kurzfristigen Analyse kann, insofern monopsonistische beziehungsweise oligopsonistische Strukturen am Arbeitsmarkt nachgewiesen werden, die...

Using a linked employer-employee data set on the German construction industry, we analyse the effects of the introduction of minimum wages in this sector on labour market dynamics. In doing so, we focus on accessions and separations, as well as the underlying labour market flows, at the...

In der Wirtschaftsgeschichte hat es immer wieder Phänomene gegeben, die als unvereinbar mit der herrschenden Ökonomik erschienen. Wenn dies dennoch bis heute zu keinem Paradigmenwechsel in der Dogmengeschichte der Wirtschaftswissenschaften führte, so zeigt sich hierin die besondere Resilienz...

We measure labor market frictions using a strategy that bridges design-based and structuralapproaches: estimating an equilibrium search model using reduced-form minimum wageelasticities identified from border discontinuities and fitted with Bayesian and LIML methods.We begin by providing the...

We analyze optimal taxation in an economy with monopsonistic labor markets. Theindividuals, whose only decisions are whether to work, or not, have heterogeneousproductivities and opportunity costs of work. Given its preferences for redistribution, thegovernment, which does not observe the...

How well does a simple search on-the-job model fit the eighteen years of job and wage mobility of high school graduates? To answer this question we are confronted from the data with a prevalent non-compliance and exemptions from the minimum wage. We incorporate this observation in a job search...