Firing costs are often blamed for unemployment. This paper investigates this widespread belief theoretically. The main points are two. First, firing costs are introduced in an efficiency wage model to capture their effects on employment though wages. Second, dismissal conflicts are modeled...

We model household choice of schools under the Boston mechanism (BM) and develop a new method, applicable to a broad class of mechanisms, to fully solve the choice problem even if it is infeasible via the traditional method. We estimate the joint distribution of household preferences and...

We examine the degree to which women's fertility decisions depend on greater gender symmetry in child care. We analyse second births and focus particularly on the importance of fatherly care for women with a strong career orientation. Exploiting the European Community Household Panel, we use...

School choice aims to improve (1) the matching between children and schools and (2) students' educational outcomes. Yet, the concern is that disadvantaged families are less able to exercise choice, which raises (3) equity concerns. The Boston mechanism (BM) is a procedure that is widely used...

It is well known that German and Spanish labour markets are quite different from a macro point of view. In this paper, we look at these markets through the lenses of individual unstable spells. These include all forms of atypical employment (such as temporary contracts and mini-jobs) as well as...

School choice aims to improve (1) the matching between children and schools and (2) students' educational outcomes. Yet, the concern is that disadvantaged families are less able to exercise choice, which raises (3) equity concerns. The Boston mechanism (BM) is a procedure that is widely used...