A quantitative model of two-sided search with ex-ante heterogeneity in both worker and entrepreneurial skills is proposed. It is possible to characterize both the competitive equilibrium and the optimal solution numerically. The competitive equilibrium is shown to be suboptimal. Less-skilled...

It may be surprising that one of the most popular compensation schemes in business is so open to being hacked - to having managers cheat to win. We explore tournament theory to detail its vulnerabilities to various forms of cheating unilateral and multilateral. We identify who is most likely to...

This paper designs and tests a comprehensive model, solved by statistical simulation, which describes and quantifies the effect of the tax system and lifelong income characteristics on the effective tax burden of a population or its segment. In the present application the model is structured and...

The gender pay gap increases with age: While the average gross hourly wage gap between male and female 30-year-olds is nine percent, the gap triples to 28 percent by the age of 50. This stark increase is due to differences in employment behavior in the decades between the ages of 30 and 50....

This paper proposes a new approach to estimate task prices per efficiency unit of skill in the Roy model. I show how the sorting of workers into tasks and their associated wage growth can be used to identify changes in task prices under relatively weak assumptions. The estimation exploits the...

Basierend auf Auswertungen repräsentativer Umfragedaten zeigt dieser Wochenbericht, dass sich Frauen und Männer in ihren Erwartungen über Lohnentwicklungen deutlich unterscheiden, vor allem bezüglich ihrer langfristigen Erwartungen (über zehn Jahre). Die stärksten geschlechtsspezifischen...

Die Lohnlücke zwischen Männern und Frauen nimmt mit steigendem Lebensalter zu. Bei Beschäftigten unter 30 Jahren beträgt der Abstand im durchschnittlichen Bruttostundenlohn neun Prozent, bis zum Alter von 50 Jahren verdreifacht sich die Verdienstlücke auf 28 Prozent. Grund für den Anstieg...

German social security records involve an indicator for part-time or full-time work. In 2011, the reporting procedure was changed suggesting that a fraction of worker recorded to be working full-time before the change were in fact part-time workers. This study develops a correction based on...

Using within-family variation from twins and siblings, I find that smokers earn approximately 16% less than nonsmokers. Possible explanations for this earning difference are addiction-related productivity declines and earning reductions from higher health insurance costs. To investigate further,...