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When contracts are incomplete and control over pre-existing assets are already assigned through onwership, the employment relation gives employers rights to expropriate worker investment. In contras...
Comments on ‘Labor Market Contracts and Inflation’ by D.J.B. Mitchell and L.J. Kimball.
We examine optimal taxation and social insurance with adverse selection in competitive insurance markets. In the previous literature, it has been shown that, with perfect insurance markets, social ins...
We show that the e§ects of taxes on labor supply are shaped by interactions between adjustment costs for workers and hours constraints set by Örms. We develop a model in which Örms post jo...
Euler-equation methods for solving nonlinear dynamic models involve parameterizing some policy functions. We argue that in the typical macroeconomic model with valuable leisure, labor function is part...
According to the textbook Keynesian model, short-run demand for labor is sensitive to the demand for goods. In this view, sellers deviate from setting the marginal product of labor proportional to the...
This paper shows that, contrary to common beliefs, the real options effect of uncertainty plays no role in the longrun rate of investment. This is proven for both the standard investment model with Co...
Asset Allocation with Endogenous Labor Income:The Case of Incomplete Markets.
This paper studies the policy determinants of economic transition and estimates the demand for labor in the infant private sector in urban China. We show that a reform that untied access to housing in...
In a series of studies in which consumers assembled IKEA boxes, folded origami, and built sets of Legos, we demonstrate and investigate the boundary conditions for what we term the "IKEA effect&"—the ...
European nations substitute between employment protection regulations and labor market expenditures (e.g., unemployment insurance benefits) for providing worker insurance. Employment regulations more ...
We analyze the effect of rising Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross- market variation in import exposure stemming from initial differences in i...
We offer a unified analysis of the growth of low-skill service occupations between 1980 and 2005 and the concurrent polarization of US employment and wages. We hypothesize that polarization stems from...
We construct a theoretical model for equilibrium distribution of workers across sectors with different labor productivity, assuming that a sector can accommodate a limited number of workers which depe...

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