Recently, there is growing debate in developed countries on the issue of the working poor. Poverty is a phenomenon traditionally associated with economically inactive persons such as the homeless, the unemployed or the handicapped. The changing of work patterns and a growing polarisation in the...

Finding a new balance between flexibility and security is a big challenge for all. According to the European Council “Providing the right balance between flexibility and security will support the competitiveness of firms, increase quality and productivity at work and help firms and workers to...

Gelismis Avrupa ulkelerinin cogu son 30 yildan bu yana issizlik problemi ile karsi karsiyadirlar. Bu ulkelerde emek arzinin erken emeklilik ve calisma surelerinin kisaltilmasi yoluyla azaltilmasi 1970’lerin sonunda itibaren issizlikle mucadelede izlenilen baslica yollar olmustur. Bu makalede...

Identifying the characteristics of long-term unemployment at the early stages in terms of gender, educational level and age is important in determining labour market policies to be concentrated for certain groups. In this paper, causes and charecteristics of long-term unemployment in both the EU...

Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and...

We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the...

This paper reports data from a laboratory experiment on two-period moral hazard problems. The findings corroborate the contract-theoretic insight that even though the periods are technologically unrelated, due to incentive considerations principals can benefit from offering long-term contracts...

We study a continuous-time game of strategic experimentation in which the players try to assess the failure rate of some new equipment or technology. Breakdowns occur at the jump times of a Poisson process whose unknown intensity is either high or low. In marked contrast to existing models, we...

We study endogenous group formation in tournaments employing experimental three-player contests. We find that players in endogenously formed alliances cope better with the moral hazard problem in groups than players who are forced into an alliance. Also, players who are committed to expending...