The transition to market in Slovenia created labor displacements that were on par or greater than thatexperienced in North America in the 1980s. A simple theoretical model suggests that factors which raisethe probability of layoff should also increase the probability of a quit, predictions that...

In a dynamic model of the labor market with moral hazard, equilibriumlayoff is modeled as termination of an optimal long-term contract. Termination,together with compensation (current and future), is used as an incentive deviceto induce worker efforts. I then use the model to study analytically...

Wenn ein Betrieb schließt, muß sich die Belegschaft eine neue Arbeit suchen - logisch. Dochschon bei den ersten Kontakten mit dem Arbeitsamt stellen viele fest, daß die Kenntnisse undFähigkeiten, die auf ihrem alten Arbeitsplatz wertvoll waren, bei neuen Arbeitgebern weniggefragt sind....

We develop a stylized dynamic model of highway policing in which a non-racist police officer exhibits a cognitive bias: relative overconfidence. The officer is given incentives to arrest criminals but faces a per stop cost which increases when the racial mix of her stops differs from that of the...

We estimate the magnitude of social interaction effects in disability pension participation amongolder workers in Norway. The problem of omitted variable bias is addressed using neighbors’exposure to plant downsizing events as an instrument for the disability entry rate among one’spreviously...

The potentially adverse labor market effects of severance pay mandates are a continuingsource of policy concern. In a seminal study, Lazear (1990) found that contract avoidance ofseverance pay firing costs was theoretically simple – a bonding scheme would do – but thatempirically the labor...

Sri Lanka's Termination of Employment of Workmen Act (TEWA) requires that firms with 15or more employees justify layoffs and provide generous severance pay to displaced workers,with smaller firms being exempted. Athough formally subject to TEWA, firms in ExportProcessing Zones (EPZs) may have...