We study the optimal duration of contracts in a principal-agent framework with both moral hazard and adverse selection. Agents decide on a contract-specific and non-verifiable investment. Incentive compatibility requires that initial contracts, which serve to screen the ability of newly hired...

We analyze self-selection and sorting of emigrants from Finland, using full-population administrative data from Statistics Finland. We analyze emigration events lasting at least five years and decompose migrant self-selection into education, occupation, and unobserved abilities. Our analysis...

Der jüngste Asylkompromiss der Europäischen Union verabschiedet sich vom Dublin-System und sieht eine gleichmäßigere Verteilung der Geflüchteten in der gesamten EU vor. Parallel werden Abkommen mit Ländern wie Tunesien geschlossen, um die Migrationsbewegungen bereits außerhalb der EU zu...

Most Ukrainians plan to return, but the share of Ukrainian refugees planning to settle outside of Ukraine has gradually increased and reached 25 percent by mid-2024.By June 2024, 12 percent of Ukrainian refugees had returned to Ukraine and 7 percent had moved to another host country compared to...

Germany is currently experiencing a huge flood of people. A large share of these refugees will remain in Germany. Appropriate institutional framework conditions need to be created in the labour market and in the social security system to produce a win-win situation with regard to immigration,...

We present and test a theory of prospective and retrospective pocketbook voting. Focusing on two large reforms in Sweden, we establish a causal chain from policies to sizeable individual gains and losses and then to voting. The Social Democrats proposed budget cuts affecting parents with young...

In European Welfare States, unskilled workers are typically unionized, while the wage formation of skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect wage formation, employment and welfare in dual domestic...