This paper studies the implications of labor taxation in determining the sensitivity of an economy to macroeconomic shocks. We construct a New Keynesian business cycle model with matching frictions of the labor market, where sluggish employment adjustment implies a key role for labor markets in...

I extend a two-skill group model by Katz andMurphy (1992) to estimate relative demand and supply for skills as well as wage rigidity in Germany. Using three data sets for Germany, two for Britain and one for the United States, I simulate the change in relative wage rigidity (wage compression) in...

This paper examines the relationship between wages and employment at the establishment level. It exploits a sample of Italian firms and workers. To correct for a potential labor composition effect, estimations use both the change in the firm's average wage and the mean of individual wage changes...

The impact of a Temporary Help Agency (THA) job placement on an employee’s future employment status and labor market income is examined using NLSY79 data for the late 1990s. Several matching estimators provide gender-specific estimates of the effects of temporary agency employment on future...

This paper presents a methodology to identify net demand shocks as well as wage rigidities in heterogeneous labor markets on the basis of nonparametric regression. We show how this approach can be used to make suggestions for immigration policy in economies with labor market rigidities. In an...

This paper estimates the impact of a more than 50 percent reduction in the minimum to average wage ratio in Mexico between 1970 and 1990 using panel data on minimum wages in thirty-two Mexican states. Minimum wages are found to have little effect on male employment but a negative employment...

Using data from a most recent national household survey in China, we provide new evidence for the associations between body mass index (BMI) and labor market attainments. In contrast to previous studies, we find a significant non-linear relationship between BMI and probability of employment /...

Using data from a most recent national household survey in China, we provide new evidence for the relationship between body mass index (BMI) and labor market attainments. In contrast to previous studies, we find a non-linear relationship between BMI and employment / wages, especially for women....

This paper describes the dynamic spatial general equilibrium model, Regional Holistic MOdeL(RHOMOLO), developed by the European Commission, where the labour market equilibrium is determined by firms’ labour demand, unemployment and interregional labour migration. We carry out simulations on...

Almost 20% of all male employees in Germany who become unemployed return to their previous employers. Such temporary layoffs and the subsequent recalls are often used by firms to shift their labor costs onto society and the unemployment benefit system, which has led to various legislation aimed...