This paper considers a matching model with both idiosyncratic productivity shocks that hit jobs at random and heterogeneity of workers according to ex ante unobservable abilities. We argue that firms' decisions about reservation productivity can help explain the shape of wage distributions. This...

This paper uses a difference-in-differences approach, combined with propensity score matching, to identify the effect of older workers employment protection on French firms' incentives to sponsor training. Between 1987 and 2008, French firms laying off workers aged over 50 had to pay a tax to...

From French data, this paper uses a difference-in-differences approach combined with propensity score matching to identify the effect of older workers employment protection on firm?s incentives to sponsor training. Laying off workers aged 50 and above between 1987 and 2008, French firms had...

Phelps [Phelps, E. (1994): "Low-wage employment subsidies versus the welfare state", American Economic Review 84, 54-58.] presented the case for a low-wage subsidy policy. Since the mid-1990s, France has experimented with this strategy. This paper evaluates the effect of this policy on...

Our paper seeks to gain insights into the effects of labor-market institutions on the dynamics of the labor market, during the diffusion process of new technologies. Because these institutions differ between Europe and the United States, we expect the dynamics of the labor market to also diverge...

In this paper, we develop a matching model where firms invest in transferable human capital. Workers are endowed with heterogeneous abilities and, as a result of economic turbulence, can undergo a depreciation of their human capital during unemployment spells. Firms take inefficient training...

This paper extends the job creation–job destruction approach to the labor market to take into account a deterministic finite horizon. As hirings and separations depend on the time over which investment costs can be recouped, the life-cycle setting implies age-differentiated labor-market flows....