Much attention has been given to claims that real estate prices in Spain are overvalued in relation to income and how plummeting house prices can jeopardize the economy (The Economist, 2003 and IMF, 2004). The measure of income elasticity on housing expenditure is often of considerable interest...

In this note, we show that the OLS and fixed-effects (FE) estimators of the popular differ-ence-in-differences model may deviate when there is time varying panel non-response. If such non-response does not affect the common-trend assumption, then OLS and FE are consistent, but OLS is more...

In the United States, many laid-off workers are recalled to their former employer. I develop an asymmetric information model of layoffs in which high-productivity workers are more likely to be recalled and may choose to remain unemployed rather than accept a low-wage job. In this case,...

Using data from social security records on Spanish males, we investigate the wage effects of working under a fixed-term contract. In a first step, we provide fixed-effects estimates of the wage effect of working under a fixed-term contract for low-skilled, medium-skilled, and high-skilled men...

Temporary layoffs are an important feature of the United States labor market. If these employer-employee relationships exist because of valuable job-matches, unemployment among high-productivity laid-off workers may be optimal from societal perspective. However, because of asymmetric...