We develop a simple model featuring search frictions and a nondegenerate labor supply decision along the extensive margin. The model is a standard version of the neoclassical growth model with indivisible labor and idiosyncratic productivity shocks and frictions characterized by employment loss and employment opportunity arrival shocks. We argue that it is able to account for the key features o...

Labor courts play an important role in determining the effective level of labor market regulation in Germany, but their application of law may not be even-handed. Based on a theoretical model of the legal process and a new panel data set, we identify a nomination bias in labor court activity – that is, court activity varies systematically with the political leaning of the government that has ap...

Evaluating the Effect of Beauty on Labor Market Outcomes: A Review of the Literature An important underlying determinant of wage discrimination, as well as the gender wage gap is the way the labor market rewards individual physical attractiveness. This article surveys the extensive empirical literature of the effect of physical attractiveness on labor market outcomes. Particular attention is gi...

Racial gaps in educational attainment increase in the early education years (Fryer and Levitt 2004 & 2006; Nores, 2007) and are sustained in secondary education (Reardon, 2008). By the end of high school, gaps can turn into different postsecondary education pathways: being a high school dropout, a high school graduate and going into the labor market, enrolling in a community college, and enroll...

The impact of labor market insecurity on immigrants’ mental health is understudied. This current study investigated whether labor market insecurity, as measured by different employment arrangements, has detrimental impact on immigrants’ depression, and if so, how it compares to the role of unemployment. Furthermore, this study investigated whether labor market insecurity had more detrimental im...

I construct an equilibrium model of the labor market where workers and firms enter into dynamic contracts that can potentially last forever, but are subject to optimal terminations. Upon a termination, the firm hires a new worker, and the worker who is terminated receives a termination contract from the firm and is then free to go back to the labor market to seek new employment opportunities an...

Abstract: This paper investigates the joint effect of local labor market conditions and individual This paper investigates the joint effect of local labor market conditions and individual differences on the duration of self-employment periods. Using register based, data the study focuses on previously unemployed business founders who have received public support to realize their entrepreneurial...

This paper addresses the implications of transitory changes in labor market conditions for low versus high educated workers on the decision to acquire education. To identify this effect, I use the improvement in labor market prospects of low educated workers motivated by the increases in construction employment and wages during the recent housing boom. The estimation strategy is based on the fa...

This article gives insights into immigrants’ incorporation into the French and British labor markets in the 1990s and the 2000s, using British and French Labor Force Surveys harmonized by the authors. It compares inequalities in earnings and employment between natives and immigrants in the two countries, but also among immigrant groups. These two countries are among the most commonly included i...