Many young employees work on a temporary basis, which entails significantly greater income risk than "permanent" work, even for jobs in the same occupation and at a similar wage. We find that this income uncertainty leads lenders to ration credit to temporary workers, precisely at the stage of...

Employment protection legislation (EPL) is an important determinant of workers' perceived future labour market prospects as well as their subjective well-being. Recent studies indicate that it is not only a worker's own level of protection, but also the employment protection of other workers...

In this paper we present and confront the expected outcome of an increase in risk on the regional or sectoral allocation of labor force and employment. The basic frameworks are the benchmark dualistic scenarios. A single-input analysis of a homogeneous product economy is provided. Uncertainty is...

This paper explores, both theoretically and empirically, how firing costs affect worker productivity and turnover. We develop a model in which workers are essential to knowledge transfer between firms and worker effort is firm-specific in the sense that a worker can be fired before reaping the...

Employment protection legislation (EPL) is an important determinant of workers' perceived future labour market prospects as well as their subjective well-being. Recent studies indicate that it is not only a worker's own level of protection, but also the employment protection of other workers...

We test Krugman’s (1991) notion of risk sharing in pooled labor markets as one of the micro-foundations of agglomeration economies, i.e. we examine whether firms share risks from idiosyncratic and sector specific shocks through labor pooling. Estimating wage functions we find that job turnover...

Uncertainty shocks are found to adversely affect labor market outcomes. Most studies attribute labor adjustments costs for the propagation of macroeconomic uncertainty to the labor market. Given that large establishments in Germany face higher labor adjustments cost, they should be affected more...

Uncertainty shocks are found to adversely affect labor market outcomes. Most studies attribute labor adjustments costs for the propagation of macroeconomic uncertainty to the labor market. Given that large establishments in Germany face higher labor adjustments cost, they should be affected more...