In this paper we develop a dynamic structural life-cycle model of labor supply behavior which fully accounts for the effects of income taxation and the transfer system. In addition to including a detailed depiction of the tax and transfer system, the model recognizes the demand side driven rationing risk that might prevent individuals from realizing their optimal labor supply state. We use this...

a r t i c l e i n f o JEL codes: J23 J3 J4 J5 D4 F66 Keywords: Labor demand Input heterogeneity Labor adjustment costs Wage and employment determination Multiple fixed effects Establishment-level functions At first blush, most advances in labor demand were achieved by the late 1980s. Since then progress might appear to have stalled. We argue to the contrary that significant progress has been ma...

It is widely argued that declining fertility slows the pace of economic growth in industrialized countries through its negative effect on labor supply. There are, however, theoretical arguments suggesting that the effect of falling fertility on effective labor supply can be offset by associated behavioral changes. We formalize these arguments by setting forth a dynamic consumer optimization mod...

Gaming scholars the world over are in consensus about Macau's bright future as a gaming Mecca. The phenomenal growth in gaming facilities over the last three years has created an acute labor shortage in this Special Administrative Region of China. Moreover, around twenty additional gaming and hotel projects have been committed so far, all slated for completion in the next five years. Expansion ...

This paper presents and estimates a dynamic stochastic general equilibrium model in which labor reallocations between production and organizational tasks and endogenous movements in measured TFP serve as an ampli…cation mechanism in business cycles. In our model, the organizational tasks are related to accumulation of organizational capital which enhances the …nancial relationships between …rms...

We investigate the dynamic effects of interregional labor market integration on migration flows, capital formation, and the price for housing services. The co-evolution of these variables depends on initial conditions at the time of labor market integration. In an initially capital-poor economy, there may be a reversal of migration flows during the transition to the steady state, while housing ...

We investigate the positive and normative consequences of child-labor restrictions for economic aggregates and welfare. We argue that even though the laissez-faire outcome may be inefficient, there are usually better policies to cure these inefficiencies than the imposition of a child-labor ban. Given this finding, we investigate the potential political-economic reasons behind the emergence and...

It is widely argued that declining fertility slows the pace of economic growth through its negative effect on labor supply. There are, however, theoretical arguments suggesting that the effect of falling fertility on effective labor supply can be offset by the associated behavioral changes. We formalize these arguments by setting forth a dynamic consumer optimization model that incorporates end...

It is widely argued that declining fertility slows the pace of economic growth through its negative effect on labor supply. There are, however, theoretical arguments suggesting that the effect of falling fertility on effective labor supply can be offset by the associated behavioral changes. We formalize these arguments by setting forth a dynamic consumer optimization model that incorporates end...

This paper develops a dynamic model of the labor market in which the degree of substitution between employment and hours of work is determined as part of a search equilibrium. Each firm chooses the demand for working hours and the number of vacancies, and the hourly wage rate is determined by Nash bargaining. A firm increases the demand for hours as recruitment becomes more costly. Labor market...