We provide a new explanation for why firms pay for general training in a competitive labor market. If firms are unable to tailor individual wages to ability, for informational or institutional reasons, they will pay for general training in order to attract better quality workers. The market...

This paper uses a laboratory experiment to study the effect of a monitoring structure on the play of the infinitely repeated prisoner's dilemma. Keeping the stage game fixed, we examine the behavior of subjects when information about past actions is perfect (perfect monitoring), noisy but public...

We study marital sorting on academic qualifications and latent ability in an equilibrium marriage market model using the 1972 UK Raising of the School-Leaving Age (RoSLA) legislation as a natural experiment that induced a sudden, large shift in the distribution of academic qualifications in...