This paper develops a labour market matching model with heterogeneous firms, on-thejob search and referrals. Social capital is endogenous, so that better connected workers bargain higher wages for a given level of productivity. This is a positive effect of referrals on reservation wages. At the...

We present a model of opinion formation where individuals repeatedly engage in discussion and update their opinion in a social network similarly to the DeGroot model. Abstracting from the standard assumption that individuals always report their opinion truthfully, agents in our model may state...

Survey data for a large sample of recent graduates from 37 German universities are used to study labor market outcomes of highly skilled young women and immigrants. Our results indicate a systemic wage gap for women, but not for male immigrants. We find no evidence that female immigrants suffer...

Despite the increasing occurrence of part-time employment in Germany, the effects on wage rates are rarely studied. I therefore use GSOEP panel data from 1984 to 2010 and apply different econometric approaches and definitions of part-time work to measure the so-called part-time wage gap of both,...

This paper uses German linked employer-employee data in order to estimate the impact of intra-firm wage dispersion on the probability that firms pay for continuous training. About half of all firms in the estimation sample cover all direct and indirect training costs, which contradicts the...

We study the role of establishment-specific wage premiums in generating recent increases in West German wage inequality. Models with additive fixed effects for workers and establishments are fit in four sub-intervals spanning the period from 1985 to 2009. We show that these models provide a good...

The self-employed constitute a large proportion of the workforce in developing countries and the sector has been found to be growing further. Different accounts exist as to the cause of this development, with pull factors such as high returns to capital and increased wealth contrasted with push...

This paper analyzes the evolution of wage inequality and wage mobility separately for men and women in West and East Germany over the last four decades. Using a large administrative data set which covers the years 1975 to 2008, I find that wage inequality increased and wage mobility decreased...

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)...