Whereas preferences of consumers are a cornerstone of market economies, preferences of employees e.g. regarding the preferred amount of paid labour are mostly not. However, we find strong evidence that differences between aspired and actually worked weekly hours have a serious negative impact on...

Many contributions suggest that earnings instability has increased during the 1980s and1990s. This paper develops and estimates an on-the-job search model of the labor market tostudy the contribution of wage inequality and job mobility in explaining earnings instability. Tostudy the evolution...