This paper constructs an integrated framework to disentangle the underlying economic mechanism of industrial transformation. We consider three essential elements for the analysis: skill requirements, industry-wide spillovers, and degrees of consumption subsistence. We find that human and...

The added worker effect states that unemployment of a household member leads to an increase in labour supply of another household member. This paper investigates whether there is such an effect in a developing country. We use a rich data set for urban Ethiopia. We first give a brief description...

In this paper we explore the issues of human capita in Kosova, a country which is characterised by high unemployment and large-scale emigration. Using data from the Riinvest Labour Force and Household Survey (December 2002), we estimate the probability of being unemployed for those who are of...

We evaluate the impact of bank loans and start-up subsidies on the survival of the new firms. This work relies on the SINE94 survey that provides rich information on the entrepreneurs and their start-up projects. We use the propensity score matching methodology, in the case of multiple...

The Commission appointed by Governor Barnes consists of fourteen members, three ex officio members, and seven advisory members. This group includes academics, members of the legislature, claimants attorneys, defense attorneys, representatives from the insurance industry, organized labor, the...

The conventional wisdom is that high European unemployment is the result of job markets that are rigid and inflexible. This paper presents new empirical evidence that challenges this received wisdom. A major contribution of the paper is that it fully accounts for both micro- and macroeconomic...

This paper provides a simple matching model in which unemployed workers and employers in large firms can be matched together through social networks or through more "formal" methods of search. We show that networks do not necessarily add new externalities and that some results previously...

Objectives. This paper analyzes the relationship between Palestinian suicide bombings and economic and political conditions from 1993 to 2001. Labor market conditions could affect the number of terror attacks because when the economy worsens, the opportunity cost of engaging in suicide terrorism...

Market clearing is the central issue in macroeconomics. Two centuries of debate on Say’s Law indicates that the issue is not yet settled. This essay proposes that double coincidence is a necessary condition for market clearing, in addition to the equality of demand and supply at equilibrium...