This paper reports on an experimental study of the relationship between job capacity, job concentration, and market power in the context of an agent-based computational model of a labor market. Job capacity is measured by the ratio of potential job openings to potential work offers, and job concentration is measured by the ratio of work suppliers to employers. For each experimental treatment, w...

I thank the referee for reading the paper and for alerting me that I have to phrase things more carefully in order to avoid misreading. Main concerns 1. The entire point is based on misreading the paper. The referee interprets the reservation wage R as relating to the unemployed or people engaged in home production, whereas I have written (I quote the entire paragraph, where the reservation wag...

This paper documents recent advances of research on labor market institutions, behavior, and policies in developing countries and makes suggestions for future research. The four areas of research analyzed are: i) theoretical and empirical implications of employment protection legislation on labor outcomes; ii) the issue of shifting from job to worker protection, namely, the different alternativ...

This study uses an agent-based computational labor market framework to experimentally study the relationship between job capacity, job concentration, and market power. Job capacity is measured by the ratio of potential job openings to potential work o!ers, and job concentration is measured by the ratio of work suppliers to employers. For each experimental treatment, work suppliers and employers...

Gross Worker Flows in the Presence of Informal Labor Markets: Evidence from Mexico, 1987-2002 This paper applies recent advances in the study of labor market dynamics to a representative developing country with a large unregulated of “informal” sector. It confirms the relevance of the recent mainstream models and debates surrounding gross worker flows to the developing country context, and offe...

This paper discusses the case for expanding active labor market policy in recession. We find that there is reasonable case for relying more heavily on certain kinds of programs. The argument is tied to the varying size of the lock-in effect in boom and recession. If programs with relatively large lock-in effects should ever be used, they should be used in a downturn. The reason is simply that t...

In most studies on individual labor market transitions, the search process leading to job offers is a black box. In this paper we specify and estimate a search model that distinguishes between formal (applications) and informal (referrals) search methods. Job offers can be obtained by either method, and the corresponding wage offer distributions are allowed to differ. The model allows for searc...

Persistence and the German Unemployment Problem: Empirical Evidence on German Labor Market Flows Using a retrospective monthly calendarium of individuals’ major economic activities, this paper characterizes the monthly employment and unemployment rates and the monthly transition intensities between the states of employment, unemployment, and out-of-thelabor-force for the German labor market bet...