Labour turnover is a crucial element of contemporary economic life. It can improve productivity if more productive workers replace less productive ones. However, in the short run, it generates sizeable labour adjustment costs (LACs), including productivity losses. This paper sheds new light on...

The Levy Institute Microsimulation Model (LIMM) is a tool used for policy simulations to estimate ex-ante the employment and income effects of sectoral investments. In Istenes (2023), a simple implementation of the LIMM for New York State initially had difficulty producing realistic conditional...

This study estimates and decomposes recruitment elasticity, a key measure of employer market power, across job-matching stages using data from Japan's largest job-matching intermediary. On average, recruitment elasticity is negative but not statistically significantly different from zero....

Using register data, we document that the average German labor market, defined by hires in combinations of 3-digit occupations, requirement levels, and commuting zones, is highly concentrated (HHI=0.257). By EU antitrust thresholds, 56 percent of these labor markets feature moderate or high...

As technological advances accelerate and labour demands shift, the ability of workers to reallocate across occupations will be crucial for shaping labour market dynamics, inequality, and effective policy design. In this paper, we develop a tractable equilibrium model of the labour market that...

In 2024, Austria's economic output shrank for the second year in a row (–1.2 percent). Companies suffered from weak demand at home and abroad, high energy prices and comparatively high unit labour costs. Private consumption declined despite rising real incomes. Manufacturing remained in...

Labor economics often assumes that wages w are equal to the marginal revenue product of labor MRP L. However, recent literature has shown that firms' market power allows them to pay wages substantially below marginal productivity. The markdown (MRP L - w)/w is our preferred measure of firms'...

Recent research documents mounting evidence for sizable and persistent biases in individual labor market expectations. This paper incorporates subjective expectations into a general equilibrium labor market model and analytically studies the implications of biased expectations for wage...

This chapter traces the evolution of the study of gender in the labor market, focusing on how academic thinking on this topic has evolved alongside real world developments in gender inequality from the 1980s to the present. We present a simple model of female labor supply to illustrate how...

We model monopsony on the labor market using a separable matching model a la Choo and Siow (2006). We propose a simple method that estimates 1) the multidimensional determinants of productivity and non-wage preferences separately and 2) the variance of unobserved heterogeneity on both sides of...

Labor economists increasingly work in empirical contexts with large numbers of unit-specific parameters. These settings include a growing number of value-added studies measuring causal effects of individual units like firms, managers, neighborhoods, teachers, schools, doctors, hospitals, police...

Disruptions of labor market trajectories have lasting effects on later economic success. One type of disruption that is understudied is displacement due to forced labor conscription, despite it still being a frequent event nowadays. I study the consequences of exposure to forced labor...

The neoclassical growth model assumes fixed labor supply and competitive labor markets. Is it harmless to ignore monopsonistic power in the neoclassical growth model? The paper argues that it is not, especially if a growth model needs to be consistent with the long-run dynamics of the labor...

Minimum wages decrease employment in competitive markets, but can increase it in monopsonistic markets so long as they do not exceed the marginal product of labour. We find evidence of non-monotonicity both by market structure and minimum wage level. Minimum wage hikes initially increase hours...

Over the last thirty years, there have been significant changes in several empirical measures of local labor market monopsony power. A monopsonist has a profit incentive to offer lower wages to local workers. High skilled mobile workers can avoid these lower wages by moving to other more...

Naidu and Yuchtman (2013) find that labor demand shocks in 19th-century Britain had an impact on master and servant prosecutions, as breaking an employee contract was a criminal offense until 1875. We first reproduce all regression tables in Naidu and Yuchtman (2013) and then test for robustness...

A significant portion of the workforce experiences what we term 'unfriendly leadership,' encompassing various forms of hostile behavior exhibited by managers. The motivations driving managers to adopt such behaviors are insufficiently understood. To explore this phenomenon, we conducted a...

This research explores the long-term equilibrium relationship between unemployment and labour force participation rates for six selected countries in Latin America at both aggregate and gender-disaggregated levels. Cointegration analysis focused on the study of time series is used to validate...

Economists increasingly refer to monopsony power to reconcile the absence of negative employment effects of minimum wages with theory. However, systematic evidence for the monopsony argument is scarce. In this paper, I perform a comprehensive test of this argument by using labor market...

We develop a model in which large risk-neutral firms and individual risk-averse consumers compete to employ heterogeneous workers by posting compensation menus. Production takes time, and we analyze how screening motives interact with the desire to smooth consumption. There is a unique symmetric...

We develop a model in which large risk-neutral firms and individual risk-averse consumers compete to employ heterogeneous workers by posting compensation menus. Production takes time, and we analyze how screening motives interact with the desire to smooth consumption. There is a unique symmetric...