Motivated by Diamond (2004) and the experiences in economies adopting the defined-contribution pension system, we study public annuities in the presence of survival probability heterogeneity. It is found that the annuitization-weighted average of survival probabilities is a useful measure of the...

Motivated by Diamond (2004) and the experiences in economies adopting the defined-contribution pension system, we study public annuities in the presence of survival probability heterogeneity. It is found that the annuitization-weighted average of survival probabilities is a useful measure of the...

Health has a significant impact on labor market outcomes, and thus on criminal decisions. We document that health positively affects an individual's wage and employment probability but has a negative effect on criminal activities. To study the economic mechanism behind these findings, we build...

Understanding the decision of individuals to become a new entrepreneur has long been an important topic among economists. Empirically, I find that (i) unemployed individuals are more likely to become an entrepreneur compared to the employed, and (ii) in response to increasing unemployment rate,...

This paper explores the possibility of privately inefficient job separations due to bargaining friction and its implications for the unemployment dynamics. I propose a simple specification of bargaining friction by including bargaining wedges in the standard Nash bargaining model. Such...

While minimum wage policy is widely adopted in the real world, its e¢ cacy in increasing the average wage of lower paid jobs without generating substantial employment repercussionsremains unproven in the empirical literature. We develop a general-equilibrium search and wageposting framework...