The authors develop a model of optimal employer search strategy when information about match quality is endogenous. The model is tested using four data sets, two of which have not previously been used. As theory predicts, the authors find that, when filling positions requiring more training,...

This article compares various measures of on-the-job training, from a new source that matches establishments and workers, allowing the authors to compare the responses of employers and employees to identical training questions. Establishments report 25 percent more hours of training than do...

Implicit markets capture compensation for intraurban and interregional differe nces in amenities and yield differences in housing prices and wages. These pecuniary differences become preference-based weights in a qual ity-of-life index. Hedonic equations are estimated using microdata fr om the...

John R. Lott and David B. Mustard conclude that right-to-carry laws deter violent crime. Our reanalysis of Lott and Mustard's data provides no basis for drawing confident conclusions about the impact of right-to-carry laws on violent crime. We document that their results are highly sensitive to...

In this paper the author examines the effect of the current social security system on the structure of compensation that a wealth- maximizing worker selects. It is shown that the current method of benef it determination encourages an upward-sloping wage profile and that the social security...

An employer must choose a procedure for screening job applicants, a rate of hire, a training program for new employees, a criterion for the retention of new employees after observing their on-the-job performance, a compensati on package, and a rate of capital investment so as to minimize...

The authors present a labor-market model that allows as special cases a market paying equilibrium wages, one paying disequilibrium efficiency wages, and a market combining the two. Their analysis indicates that industrial wage differentials are not necessarily evidence of efficiency wages. Such...