This paper uses 16 waves of panel data from the British Household Panel Survey to evaluate the role of subjective well-being in determining labor market transitions. It confirms a previous finding in the literature: individuals report a fall in their happiness when they lose a job, but they report a smaller fall when they are surrounded by unemployed peers, an effect called the ”social norm”. T...

Education in a "Job Ladder" Model and the "Fairness-in-Hiring" Rule Jagdish N. Bhagwati and T. N. Srinivasan Education turns a person into a different 'kind of labor. Any economic analysis of education therefore must be based on a theory as to what this difference consists in; it must also presuppose a theory as to how the market for this kind of labor functions. This paper proposes and analyze...

Market Imperfections and Firm-Sponsored Training Recent human capital theories predict that labor market frictions and product market competition influence firm-sponsored training. Using matched worker-firm data from Dutch manufacturing, our paper empirically assesses the validity of these predictions. We find that a decrease in labor market frictions significantly reduces firms’ training expen...

One of the factors which influence individual's decision for presence or absence in the labor force is their personal features. In order to take appropriate policies to create employment and remove its obstacles in the countries labor market, we need to know the factors mentioned above and determine the amount and direction in which each factor influences the probability of individual's presenc...

Previous research has revealed but not explained the occurrence of wide variations in pay for the same job, even within a single local labor market. We investigated how compensation managers from a wide variety of organizations combined information about current job pay rates, market rates, and job evaluation points to arrive at new pay rates. In addition, we examined the role of organizational...

Outsourcing has been increasing in recent years as more firms in the developed countries have decided to outsource part of their production activities to their subsidiaries or local firms in the developing countries. Outsourcing either reduces a firm’s cost of labor or gives a firm better access to the local market so as to gain a larger market share. This rise in outsourcing activities has cre...

In recent years, the underlying IT growth trends of the 1990s underwent a reversal as the new century dawned. These labor market changes have been reflected in the changing nature of employment. Distributive justice theory suggests employees’ perceptions of the fairness of the outcomes that are received are based on the employees’ inputs. We examine IT professionals’ perceptions of job stabilit...