The Mortensen and Pissarides (1994) matching model with all wages negotiated each period is shown inconsistent with macroeconomic wage dynamics in the US. This applies even when heterogeneous match productivities, time to build vacancies and credible bargaining are incorporated. Wage rigidity...

This paper introduces a method for estimating workers' marginal willingness to pay for job attributes employing data on job search activity. Worker's willingness to pay to avoid a temporary contract, which increases the risk of becoming unemployed, is derived for Lithuania. The empirical...

We estimate a dynamic programming model of schooling decisions in which the degree of risk aversion can be inferred from schooling decisions. In our model, individuals are heterogeneous with respect to school and market abilities but homogeneous with respect to the degree of risk aversion. We...