We analyze the impact of labor demand and labor market regulations on the corporate structure of firms. We find that higher wages are associated with lower monitoring, irrespective of whether these high wages are caused by labor market regulatio ns, unions or higher labor demand. These...

This paper argues that moderate unemployment insurance not only reduces the uncertainty faced by risk-averse workers but also improves efficiency and raises output. We develop a model in which the decentralized equilibrium is inefficient without unemployment insurance, because the labor market...

In market economies, identical workers receive very different wages, violating the Walrasian 'law of one price'. We argue that in the absence of a Walrasian auctioneer to coordinate trade, wage dispersion among identical workers is an equilibriu m phenomenon. Moreover, wage dispersion is...

I consider an economy where skilled and unskilled workers use different technologies. The rate of improvement of each technology is determined by a profit-maximizing R&D sector. When there is a high proportion of skilled workers in the labor for ce, the market for skill complementary...

Using data from the German Socio Economic Panel, I describe the incidence, attributes, and outcomes of continous training received by workers in Germany between 1986 and 1989. Further training is primarily a white collar phenomenon, it is concentrated among the more highly educated, in the...

This paper offers an alternative theory for the increase in unemployment and wage inequality experienced in the U.S. over the past two decades. In my model firms decide the composition of jobs and then match with skilled and unskilled workers.

Are the large measured returns to on-the-job computer-use productivity gains or the result of unobserved heterogeneity unrelated to productivity? We examine this issue with two large cross-sectional surveys from Germany.

In market economies, identical workers appear to receive very different wages, violating the "law of one price" of Walrasian markets. We argue in this paper that in the absence of a Walrasian autioneers to coordinate trade": (i) wage dispersion among identical workers is very often an...