Efficiency wages theories argue that the threat of firing, coupled with a high unemployment rate, is a mechanism that discourages employee shirking in asymmetric information contexts. Our empirical analysis aims to test the role of unemployment as a worker discipline device, considering the...

Using linked employer-employee panel data for West Germany that include direct information on the competition faced by plants, we investigate the effect of product market competition on the gender pay gap. Controlling for match fixed effects, we find that intensified competition significantly...

The Current Population Survey is used to investigate effects of Common Law Marriage (CLM) on whether young US-born adults live in couples in the US CLM effects are identified through cross-state and time variation, as some states repealed CLM over the period examined. Analysis based on Gary...

In a prolific and illustrious career, the late Gary Becker (1930 - 2014) developed what he would later call "the economic approach to human behaviour". One of the most significant strands of that research was that which focused on human capital, occuping a significant part of his career,...

We model consumption and labor supply behavior of a couple in a non-cooperative setting. Using minimal assumptions, we prove that demand for public goods is characterized by three regimes. It is either determined by the preferences of one of the partners only (Husband Dictatorship or Wife...

Access to selective universities is highly coveted because of the perception that attending one provides opportunities otherwise difficult to obtain. To broaden access to the state's flagship universities in a manner that does not rely on conventional affirmative action, Texas passed the Top Ten...

We show that information revealed by the occupation choices of spouses predicts marital dissolution. Using a novel measure of occupational distance constructed from the O*Net Content Model, we find that spouses more closely matched in terms of their occupations' requisite knowledge are more...

This paper investigates the role of productivity as a determinant of the worker's retirement intentions. Using an overlapping generation framework, we analyze the retirement decision of a cohort of workers being ability heterogeneous. The labor market is endogenously segmented between workers...

Proposition 209 banned the use of racial preferences in admissions at public colleges in California. We analyze unique data for all applicants and enrollees within the University of California (UC) system before and after Prop 209. After Prop 209, minority graduation rates increased by 4.35...

This paper provides a theoretical and empirical analysis of the effect of performance-based layoffs on wage rigidity in the context of performance pay. In the model, it becomes optimal for firms to raise future regular pay to maintain workers' current efforts, which results in downwardly rigid...