We analyze the employment effect of a law that provides for a 36 percent increase in thegenerosity of disability insurance (DI) for claimants who are, as a result of their lack of skillsand of the labour market conditions they face, deemed unlikely to find a job. The selectionprocess for...

We analyse worker self-selection with a special focus on teachers. The point of the paper is that worker composition is generally endogenous, due to worker selfselection. In a first step we analyse lab experimental data to provide causal evidence on particular sorting patterns. This evidence...