Employment protection is often related to costs incurred by firms when they fire a worker. The stability of the employment relationship, enhanced by employment protection, is also favourable to the productivity of the job. We analyse employment protection focusing on this trade-off between...

The selection of immigrants by skill and education is a central issue in the analysis of immigration. Since highly educated immigrants tend to be more successful in host country labour markets and less of a fiscal cost it is important to know what determines the skill-selectivity of immigration....

Like active labour market programmes, grade repetition could generate two types of effects: better/worse outcomes due to programme participation (i.e. the fact that pupils repeat a particular grade). This is what the existing literature on grade repetition has focused on. Another potential...

We analyze discrimination against less attractive people on a TV game show with high stakes. The game has a rich structure that allows us to disentangle the relationship between attractiveness and the determinants of a player’s earnings. Unattractive players perform no worse than attractive...

Much empirical evidence shows that female and male partners look alike along a variety of attributes. It is, however, unclear how this positive sorting comes about because marriage is an equilibrium outcome arising from a process that entails searching, meeting, and choosing one another. This...

We propose a novel experimental design to study counterproductive behaviour in a principal agent setting. The design allows us to study and derive clean measures of different forms of counterproductive behaviour in a controlled but non-obtrusive manner. We ask participants to complete a specific...

Many randomized controlled trials require participants to opt in. Such self-selection could introduce a potential bias, because only the most optimistic may participate. We revisit this prediction. We argue that in many situations, the experimental intervention is competing with alternative...

We investigate whether experimental subjects can predict behavior in a prisoner's dilemma played on a TV show. Subjects report probabilistic beliefs that a player cooperates, before and after the players communicate. Subjects correctly predict that women and players who make a voluntary promise...

In recent years some OECD countries were successful in lowering the unemployment rate substantially while other countries were not. In this paper we investigate to what extent successful countries implemented a comprehensive set of institutional reforms. We present a theoretical framework to...