Across nine transition economies, it is the young, educated, English-speaking workers with thebest access to local telecommunications infrastructures that work with computers. Theseworkers earn about 25% more than do workers of comparable observable skills who do not usecomputers. Controlling...

This paper proposes a simple framework to study incentives and matching in the marketfor teachers. The framework is used to investigate the consequences of introducing incentivepay for teachers when contracts have both a matching and an incentive effect. Our analysissuggests that school...

The Peter Principle states that, after a promotion, the observed output of promotedemployees tends to fall. Lazear (2004) models this principle as resulting from a regression tothe mean of the transitory component of ability...

We provide evidence on the extent of ethnic segregation experienced bychildren across secondary schools and neighbourhoods (wards). Using 2001Schools Census and Population Census data we employ the indices ofdissimilarity and isolation and compare patterns of segregation across nineethnic...

We study how workers’ wages respond to TFP-driven innovations in firms’ labor productivity.Using unique data with highly reliable firm-level output prices and quantities in themanufacturing sector in Sweden, we are able to derive measures of physical (as opposed torevenue) TFP to instrument...

Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures that work with computers. These workers earn about 25% more than do workers of comparable observable skills who do not use computers. Controlling...

In labor markets with worker and firm heterogeneity, the matching between firms and workersmay be assortative, meaning that the most productive workers and firms team up. Weinvestigate this with longitudinal population-wide matched employer-employee data fromPortugal...

Implementing performance pay requires that workers' output be measured. Whenmeasurement costs differ among firms, those with a measurement cost advantage choose toimplement performance pay. They attract the best workers, and both the level and variabilityof compensation are higher at these firms...