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Unemployment dynamics and the cost of business cycles

Hairault, Jean-Olivier; Langot, François; Osotimehin, … - 2008

In this paper, we investigate whether business cycles can imply sizable effects on average unemployment. First, using a reduced-form model of the labor market, we show that job finding rate fluctuations generate intrinsically a non-linear effect on unemployment: positive shocks reduce...

Persistent link: https://www.econbiz.de/10010269007

Unexplained gaps and Oaxaca-Blinder decompositions

Elder, Todd E.; Goddeeris, John H.; Haider, Steven J. - 2009

We analyze four methods to measure unexplained gaps in mean outcomes: three decompositions based on the seminal work of Oaxaca (1973) and Blinder (1973) and an approach involving a seemingly naive regression that includes a group indicator variable. Our analysis yields two principal findings. We...

Persistent link: https://www.econbiz.de/10010269011

A reevaluation of the role of family in immigrants' labor market activity: evidence from a comparison of single and married immigrants

Cohen-Goldner, Sarit; Gotlibovski, Chemi; Kahana, Nava - 2009

Previous papers tested the validity of the Family Investment Hypothesis (FIH) among immigrants by comparing the labor market outcomes of immigrant couples and native or mixed couples. Here we propose an alternative test for the FIH which is based on a comparison between married and single...

Persistent link: https://www.econbiz.de/10010269019

Delinquent networks

Ballester, Coralio; Calvó-Armengol, Antoni; Zenou, Yves - 2009

Delinquents are embedded in a network of relationships. Social ties among delinquents are modeled by means of a graph where delinquents compete for a booty and benefit from local interactions with their neighbors. Each delinquent decides in a non-cooperative way how much delinquency effort he...

Persistent link: https://www.econbiz.de/10010269030

Identifying sorting: in theory

Eeckhout, Jan; Kircher, Philipp - 2009

We argue that using wage data alone, it is virtually impossible to identify whether Assortative Matching between worker and firm types is positive or negative. In standard competitive matching models the wages are determined by the marginal contribution of a worker, and the marginal contribution...

Persistent link: https://www.econbiz.de/10010269035

Peer effects and social networks in education

Calvó-Armengol, Antoni; Patacchini, Eleonora; Zenou, Yves - 2008

This paper studies whether structural properties of friendship networks affect individual outcomes in education. We first develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to her Katz-Bonacich centrality measure. This...

Persistent link: https://www.econbiz.de/10010269037

Offshoring and unemployment: the role of search frictions and labor mobility

Mitra, Devashish; Ranjan, Priya - 2009

In a two-sector, general-equilibrium model with labor-market search frictions, we find that wage increases and sectoral unemployment decreases upon offshoring in the presence of perfect intersectoral labor mobility. If, as a result, labor moves to the sector with the lower (or equal) vacancy...

Persistent link: https://www.econbiz.de/10010269045

Measuring unemployment insurance generosity

Pallage, Stéphane; Scruggs, Lyle; Zimmermann, Christian - 2008

In this paper, we develop a methodology to summarize the various policy parameters of an unemployment insurance scheme into a single generosity parameter. Unemployment insurance policies are multdimensional objects. They are typically defined by waiting periods, eligibility duration, benefit...

Persistent link: https://www.econbiz.de/10010269048

A martingale representation for matching estimators

Abadie, Alberto; Imbens, Guido W. - 2009

matching estimators. As an illustration of the applicability of the theory, we derive the asymptotic distribution of a matching …

Persistent link: https://www.econbiz.de/10010269062

Supply theory sans profit-maximization

Dasgupta, Indraneel - 2009

predictive content of the traditional theory of competitive supply. A number of key results in the deterministic theory follow as … predictive content of the classical theory of competitive firm behavior from its a priori roots in profit maximization, while … subsuming the traditional theory as a special case. …

Persistent link: https://www.econbiz.de/10010269089