Monthly panel (1998-2003) data from regional labor offices in Latvia are used to conclude on the specificity of matching process in this transition economy and to evaluate the impact of active labor market policy programs on outflows from unemployment. Results confirm that the hiring process is...

Economic research suggests that the amount and duration of unemployment benefits can increase equilibrium rate of unemployment, but the literature has overlooked the effects of other restrictions on benefits, namely the length of the qualifying period and the base period. We develop a...

Empirical studies find that the age-variance profile of wages is U-shaped. The objective of this paper is to explore the driving forces of the U-shape in a model with search frictions. I introduce endogenous search effort and a fixed retirement age into Cahuc, Postel-Vinay, and Robin s (2006)...

This paper addresses the large degree of frictional wage dispersion in US data. The standard job matching model without on-the-job search cannot replicate this pattern. With on-the-job search, however, unemployed job searchers are more willing to accept low wage offers since they can continue to...

This paper develops a search and matching model with hierarchical firms, human capital accumulation, internal promotions and on-the-job search. At the time of their market entry firms maximize present value of profits with respect to their promotion rule. Workers who are eligible for promotion...

Much of the inequality literature has done a great deal of work to study national inequality. However, most people live in cities and their experience of inequality is shaped by their local and metropolitan environment. This fact implies that next to inequality in countries, local inequality is...

We examine whether income and unemployment risks are compensated by individual wages. Using a portfolio approach we show that the marginal income risk effect on wages is always positive whereas the marginal unemployment risk effect crucially depends on the income risk. The interaction effect...

Fitting duration models on an inflow sample of jobs in Germany starting in 2002-2010, this paper investigates the impact of employers' use of temporary agency work on regular workers' job stability. In line with dual labour market theory, I find that non-temp jobs are significantly more stable...

I study the short- to medium-run effects on subsequent health outcomes of starting a career on a fixed-term contract. I focus on career start since I expect that temporary contracts and their inherent economic uncertainty imply a path dependence that might have spill-over effects on other...

The existence and persistence of large spatial disparities in un-employment within national economies is a central issue in regional economics. Previous empirical analyses have largely disregarded the role of fundamentals. On the contrary in this paper we explore the link between labour...