In a non-stationary job search model we allow unemployed workers to have a permanent option to leave the labor force. Transitions into nonparticipation occur when reservation wages drop below the utility of being nonparticipant. Taking account of these transitions allows the identification of...

Thurow's job-competition model implies that overeducation is contingent upon the differing skill endowments of employees. As yet, only rudimentary evidence has been furnished to confirm this relationship. In the present paper, we test the theory in a more sophisticated manner, by means of a more...

We analyze the impact of entrepreneurship as an outside option on compensation contracts between a principal and an agent with bargaining power. In the first stage the parties bargain over the base wage and the profit share. In the second stage the principal determines the capital investment and...

According to Becker [1964], when labour markets are perfectly competitive, general training is paid by the worker, who reaps all the benefits from the investment. Therefore, ceteris paribus, the greater the training wage premium, the greater the investment in general training. Using data from...

Over the past decade, the share of jobs not controlled by the state has increased considerably, whilst employment in agriculture has declined, against the backdrop of ongoing urbanisation. Over 200 million people have been drawn into urban areas through official or unofficial migration, despite...

Are there long-term labor consequences in migrating to the US during a recession? For most immigrants, credibly estimating this effect is difficult because of selective migration. Some immigrants may not move if economic conditions are not favorable. However, identification is possible for...

We present field experimental evidence that limited information about workseekers’ skills distorts both firm and workseeker behavior. Assessing workseekers’ skills, giving workseekers their assessment results, and helping them to credibly share the results with firms increases workseekers’...

The paper aims to identify the effect of non-standard employment on wages in the Turkish labour market across gender and decompose the gap to understand the role of endowments and returns in generating the earning differences. Our findings show that non-standard employment reduces wages for...

It is an overarching and persistent fact that job creation in the Indian manufacturing sector has fallen short of the growth in the workforce. The successive governments since 2009 onwards have attempted to initiate policies to enhance the growth in employment along with quality of jobs in the...

The paper studies human capital accumulation over workers' careers in an on the job search setting with heterogenous firms. In renegotiation proof employment con- tracts, more productive firms provide more training. Both general and specific training induce higher wages within jobs, and with...