We study the impact of tax and minimum wage reforms on the incidence of informality. To gauge the incidence of informality, we use measures of the extent of tax evasion, the extent of minimum wage non-compliance, and the size of the informal workforce. Our approach allows us to examine (i) the...

We analyze how the top firms and managers from one market (industry or country) would compete with those from another, to develop an integrated market for talent. In our competitive matching model, in two distinct markets talent has general and market-specific human capital (GHC and M-SHC)...

This study examines the effect of noncompete enforceability on training and wages. An increase from non-enforcement to mean enforceability is associated with a 14% increase in training, which tends to be firm-sponsored and designed to upgrade or teach new skills. In contrast to theoretical...

This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms' job offer and workers' job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that...

Joan Robinson first suggested that the labor supply curve for a firm may be upward sloping with a finite wage elasticity. Recently, a rapidly growing volume of microeconomics studies have found empirical support for Robinson's suggestion. In this paper it is shown that if a firm's wage...

Perfect competition implies stage two production for labor, where increased employment lowers productivity and decreased employment increases productivity. In contrast, empirical studies of individual firms and macroeconomic studies of the business cycle have document pro-cyclical productivity....

We propose a multi-country model with occupational choice, heterogeneous firms, unemployment, and revenue-generating tariffs to study the aggregate and distributional consequences of tariff wars in a unified framework. Motivated by the 2018 global tariff war, we calibrate the model to fit a...

In recent decades most developed countries have experienced an increase in income inequality. In this paper, we use an equilibrium search framework to shed additional light on what is causing an income distribution to change. The major benefit of the model is that it can accommodate shocks to...