Markets with rigid labour regulations and centralized wage setting are often thought to be inefficient but egalitarian. Using a model of off- and on-the-job search and event-history, individual-level data for Italy and the U.S., we show that while the cross-sectional wage distributions of young...

The author develops and estimates an equilibrium model of the labor market in which inefficient employees are systematically eliminated from the sector of the market characterized by asymmetric information and moral hazard. Systematic selection on the distribution of productivity characteristics...

I develop a model in which exact compliance with child support orders is synonymous with cooperative outcomes with respect to child good expenditures The child support order imposed by institutional agents serves as focal point for the problem of dividing the gains from cooperation. Compliance...

In spite of ongoing dramatic changes in labor market structure, transitional economies display rather low worker flows across sectors and occupations. Such low mobility can be explained by low returns to job changes as well as by market segmentation in the allocation of job offers. We develop an...