This paper studies the impact of raiding opportunities in a competitive labor market where firms have complete information about the ability of employed workers but are incompletely informed regarding the ability of the unemployed. In equilibrium, some high-ability workers are involuntarily...

This paper studies decentralized exchange by bilateral matching and bargaining when resale is possible. Decentralized exchange involves the risk that goods and services may be allocated inefficiently; if low-valuation buyers consume while high-valuation buyers do not, then social welfare is...

Denmark has drawn much attention for its active labor market policies, but is almost unique in offering a voluntary public unemployment insurance program requiring a significant premium payment. A safety net program--a less generous, means-tested social assistance plan—completes the system....

This projeect employs the theory of equality of opportunity, described in Roemer's (Equality of Opportunity), Havard University Press, 1998), to compute the extent to which tax-and-transfer regimes in ten countries equalize opportunities among citizens for income acquisition. Roughly speaking,...

This article studies the impact of raiding opportunities in a labor market in which worker abilities differ. Recruiting firms can either raid an elsewhere-employed worker of known ability by bidding up his wage or go through costly search to find a good worker among the unemployed. In...