European Social Survey data on 30 countries, covering years 2004-2009, are used to lookinto joint institutional [and other macro] determinants of the rates of dependent employmentwithout a contract, informal self-employment, and unemployment (secondary jobs are notaccounted for). Consistently...

The introduction of firm size into labor search models raises the question how wages are setwhen average and marginal product differ. We develop and analyze an alternative to theexisting bargaining framework: Firms compete for labor by publicly posting long- termcontracts. In such a competitive...

Payroll taxes represent a major distortionary influence of governments on labor markets. Thispaper examines the role of payroll taxation and the social safety net for cyclical fluctuations ina nonmonetary economy with labor market frictions and unemployment insurance, when thelatter is only...

What are the impacts of labor tax reform on wage setting and employment to keep therelative tax burden per low-skilled and high-skilled workers constant in the case ofheterogenous domestic labor markets, i.e. imperfect competition in low-skilled labor andperfect competition in high-skilled labor...

We use individual data for Great Britain over the period 1992-2009 to compare the probabilitythat employed and unemployed job seekers find a job and the quality of the job they find. Thejob finding rate of unemployed job seekers is 50 percent higher than that of employed jobseekers, and this...

When workers send applications to vacancies they create a network. Frictions arise becauseworkers typically do not know where other workers apply to and firms do not know whichcandidates other firms consider. The first coordination friction affects network formation, whilethe second coordination...

We analyze empirically the effects of urban agglomeration on Italian college graduates’ workpossibilities as entrepreneurs three years after graduation. We find that each 100,000inhabitant-increase in the size of the individual’s province of work reduces the chances ofbeing an entrepreneur...

This paper analyzes the joint effect of EPL and financial market imperfections on investment,capital-labour substitution, labour productivity and job reallocation in a cross-countryframework. In the spirit of Rajan and Zingales (1998) and Ciccone and Papaioannou (2006),we exploit variation in...

Informality has long been a salient phenomenon in developing country labor markets, thushas been addressed in several theoretical and empirical research. Turkey, given its economicand demographic dynamics, provides rich evidence for a growing, heterogeneous andmultifaceted informal labor market....