This paper analyzes the contribution of flow rates and flow probabilities for unemployment dynamics of different age groups using administrative panel data for Germany. I consider a three-state model and allow for flows from/to inactivity (out of the labor force) to/from unemployment. The...

This paper evaluates the strength of information flow from employed past coworkers on the re-employment duration of displaced workers due to plant closures in Austria. Using the Austrian Social Security Database (a matched employer-employee database) we exploit the panel structure of 36 years of...

This paper develops a search and matching model with hierarchical firms, human capital accumulation, internal promotions and on-the-job search. At the time of their market entry firms maximize present value of profits with respect to their promotion rule. Workers who are eligible for promotion...

We study optimal promotion decisions of hierarchical firms, with one junior and one senior managerial position, which interact in a search and matching labour market. Workers acquire experience over time while being employed in a junior position and the firm has to determine the experience level...

Social networks are an important channel of information transmission in the labor market. In this paper investigate how displaced workers searching for new jobs benefit from information provided by their former coworkers. In line with the theoretical and empirical literature we find that the...

Since Marshall (1890), it has been widely held in urban economic theory that cities ensure workers against the risk of unemployment by offering a larger pool of potential jobs. Using a large administrative panel data set on workers affected by firm closures, we examine whether positive effects...

Social networks may affect individual workers' labor market outcomes. Using rich spatial data from administrative records, we analyze whether neighbors' employment status influences an individual worker's employment probability after establishment closure and, if hired, his wage. Our findings...

We use the German Job Vacancy Survey to investigate whether firms are able to attract more suitable applicants by offering bargain wages rather than posting fixed wages. Contrary to the theoretical predictions provided by the literature, we find that the offer to bargain over pay decreases the...

There is considerable debate on whether the prospects of entering a high-paid job are better for those in low-paid jobs compared to the unemployed. Whilst some scholars argue that there is a scarring effect of unemployment others highlight that low pay might signal a low productivity and...

This paper analyzes how workers are allocated to jobs in Germany. Our main contribution is to show how labor market sorting has evolved over time across worker types and how these developments are related to wages and wage inequality. We show direct empirical evidence that wages are not...