. Moreover, it is shown that the neglect of endogenous but not observable behavior in the empirical literature on labor matching …

While economic studies often assume that labor markets are in equilibrium, there may be specialized labor markets that …

of labor demand, nor the wage of permanent workers, assumed to be exogenous. This is the main difference with the more …

This paper describes IZAΨMOD, the policy microsimulation model of the Institute for the Study of Labor (IZA). The model …, public transfers. Secondly, behavioral labor supply responses are estimated. The third component distinguishes our model from … most other microsimulation tools. A demand module takes into account possible restrictions of labor demand and identifies …

price. Firms adjust wages flexibly in response to variations in labor demand. The resulting theory of wage adjustment is …We present a new theory of wage adjustment, based on worker loss aversion. In line with prospect theory, the workers … wage increases and thus firms face an upward-sloping labor supply curve that is convexly kinked at the workers' reference …

substitution and complementarity relationships between subsidized and non-subsidized labor demand. We apply an instrumental …