In this paper a labor supply model with demand side rationing is estimated to analyze the economic policies that directly affect incentives to work as well as labor costs. The framework is applied to evaluate the employment effects of a federal minimum wage in Germany and the impact of employer-...

After the fall of the Berlin wall, the total fertility rate in East Germany tumbled from 1.7 (1989) to a stunning 0.7 children per woman (1994). While this fact is well-documented, little is still known about the crisis underlying causes. We propose a new explanation: permanent shifts in the...

The possibility of adverse selection by training firms is common theoretical argument for company-sponsored investments in general skills. The paper derives a public and a private signal after apprenticeship training and shows that training firms are able to positively select graduates they...

We implement a laboratory experiment in which a principal has to decide on monitoring intensity and pay to investigate whether they are complements or substitutes. Wage level, monitoring intensity, and consequently the desired enforceable effort level are jointly determined by the maximization...

I derive the unconditional transformed likelihood function and its derivatives for a fixed-effects panel data model with time lags, spatial lags, and spatial time lags that encompasses the pure time dynamic and pure space dynamic models as special cases. In addition, the model can accommodate...

In this paper we explore the possibility of the application of GAMLSS regression techniques for the analysis of income distributions in Germany following the reunification. We find that conditional income distributions can generally be modelled using the three parameter Dagum distribution and...

Local returns to scale in the labor market have been notoriously difficult to disentangle from increasing returns in the product market and from the spatial sorting of workers and firms as a source for regional variation in productivity. In this paper we use the introduction of high-speed rail...

Using data from social security records on Spanish males, we investigate the wage effects of working under a fixed-term contract. In a first step, we provide fixed-effects estimates of the wage effect of working under a fixed-term contract for low-skilled, medium-skilled, and high-skilled men...

This paper studies the causal effects of graduating from university with an honors degree on subsequent labor market outcomes. While a rich body of literature has focused on estimating returns to human capital, few studies have analyzed returns at the very top of the education distribution. We...