The pace of job reallocation has declined in all U.S. sectors since 2000. In standard models, aggregate job reallocation depends on (a) the dispersion of idiosyncratic productivity shocks faced by businesses and (b) the marginal responsiveness of businesses to those shocks. Using several novel...

The growing finance wage premium relates to a modest net reallocation of skilled workers from non-finance sectors into finance in a sample of 13 sectors in 24 countries over 35 years. Reallocation is higher when the finance wage premium grows faster than the contribution of finance to the...

We study strategy-proof probabilistic mechanisms in a binary excludable public good model. We construct a new class of probabilistic mechanisms satisfying strategy-proofness, called α-mechanisms.We first show that the α-mechanisms are second-best efficient. Next, we identify the optimal...

We explore data from all transition economies over nearly two decades, providing insights on the mechanisms behind labor force reallocation. We show that worker flows between jobs in different industries are rare relative to the demographic flows of youth entry and elderly exit. The same applies...

In this paper, survey data are used to document the presence of gender gaps in self-employment, employership, and labor force participation in seven Balkan countries and Turkey. The paper examines the quantitative effects of the gender gaps on aggregate productivity and income per capita in...

We study the allocation of interest rate risk within the European banking sector using novel data. Banks' exposure to interest rate risk is small on aggregate, but heterogeneous in the cross-section. In contrast to conventional wisdom, net worth is increasing in interest rates for approximately...

This paper answers briefly basic questions on how an Islamic zero-interest-rate economy (ZIRE) allocates, through the market, real and financial investments. Questions addressed include: What is the meaning and scope of the zero-interest imperative? Wouldn't zero-interest regime deprive an...

We consider a model in which projects are to be assigned to agents based on their preferences, and where projects have capacities, i.e., can each be assigned to a minimum and maximum number of agents. The extreme cases of our model are the social choice model (the same project is assigned to all...

The aim of this paper is to study asset reallocation in financial markets subject to search, bargaining, and information frictions, and to analyze the impact of monetary policy on equilibrium outcomes. The main results show that private information regarding the quality of an asset impairs its...

The article derives the optimal allocation of projects when two firms are engaged in a strategic alliance with an asymmetric liquidation option. Our model solves for the optimal allocation when a manager can liquidate the internally managed project and reallocate the funds to the alliance but...