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...