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We consider a dual labor market with a frictional formal sector and a competitive informal sector. We show that the size of the informal sector is generally too large compared to the optimal allocation of the workers. It follows that our results give a rationale to informality-reducing policies
Persistent link: https://www.econbiz.de/10013099083
This paper studies the impact of an European-like labor market regulation on the return to schooling, equilibrium unemployment and welfare. We show that firing costs and temporary employment have opposite effects on educational choices. We furthermore demonstrate that a laissez faire economy...
Persistent link: https://www.econbiz.de/10013146825
We analyze state-level matching efficiencies in the Indian labor market using stochastic frontier analysis. The key … contribution of this research is the estimation of matching efficiencies at the state level because these can be used for a state …-level measure of labor market conditions. Next, we explore the relationship between the estimated matching efficiencies and …
Persistent link: https://www.econbiz.de/10013251303
. Moreover, it is shown that the neglect of endogenous but not observable behavior in the empirical literature on labor matching … leads to systematically biased estimates of the matching elasticities, posing a caveat on the results of previous studies … testing for constant returns of the matching function. The theoretical model presented allows to predict the direction of the …
Persistent link: https://www.econbiz.de/10011412007
This study uses a matched employer-employee data set on the Portuguese economy to analyze systematic information on job creation and job destruction for university graduates, compared to other groups of workers. We find that the unemployment rate can provide a misleading idea of the dynamics in...
Persistent link: https://www.econbiz.de/10011414508
participation in terms of employment probabilities, earnings, and career prospects after the completion of training using a matching …
Persistent link: https://www.econbiz.de/10011318149
The aggregate matching (hiring) function relates gross hires to labor market tightness. Decompositions of aggregate …
Persistent link: https://www.econbiz.de/10011581219
formal and informal workers, we alternatively implement propensity score matching. In contrast with the recent studies for … other developing countries showing that the wage gap estimates with propensity score matching is insignificant, we do find …
Persistent link: https://www.econbiz.de/10011548188
Like many transition economies, Slovenia is undergoing profound changes in the workings of the labor market with potentially greater flexibility in terms of both wage and employment adjustment. We investigate the impact of the changing labor market for Slovenia using unique longitudinal matched...
Persistent link: https://www.econbiz.de/10010262681
A labor matching model with nominal rigidities can match short-run movements in labor's share with some success …
Persistent link: https://www.econbiz.de/10010265220