We address the interrelationships between residential mobility, labor market mobility, and commuting. The paper takes its starting point in recent findings in economic research which emphasise that job and residence relocation decisions imply forward-looking decision making. We examine job and residential mobility by means of bivariate models and interpret the outcomes in light of the search mo...

This study investigates empirically the effects of a pilot project in which unemployed persons were used as temporary employment counsellors. Economic theory clearly points in the direction of a positive relation between search intensity and exit from unemployment. The fundamental concept of the project was the use of unemployed, who underwent customised training, to assist other unemployed in ...

This paper considers labour supply and demand shocks in a simple flow model of the labour market. We consider the propagation of these shocks in a matching model with competition between various groups of job seekers. By way of simulations we explore the extent of labour market hysteresis arising from competition between unemployed job seekers and job seekers outside the labour force. The simul...

We analyze the effects of adverse selection on worker turnover and wage dynamics in a frictional labor market. We consider a model of on-the-job search where firms offer promotion wage contracts to workers of different abilities, which is unknown to firms at the hiring stage. With sufficiently strong information frictions, low-wage firms offer separating contracts and hire all types of workers ...

I extend a simple model with on-the-job-search in the labor market by monopolistic competition in the goods market. It is well known that the simple on-the-job-search model predicts a wage distribution which is convex where empirical evidence suggests that it is humpshaped. My model is able to predict a hump-shaped wage distribution. The intuition for the decline of the density function at the ...

SUMMARY In the empirical analysis of unemployment durations and job durations, it is generally assumed that the stochastic processes underlying labour market behaviour and the behaviour concerning participation in a panel survey are independent. However, there are reasons to believe that the probability of dropping out of the panel is related to the rate at which a (different) job is found. If ...

Flexibility vs. Rigidity: Does Spain have the worst of both Worlds? In this paper we study the structure of labor market flows in Spain and compare them with France and the US. We characterize a number of empirical regularities and stylized facts. One striking result is that the job finding rate is slightly higher than in France, while the jon loss rate is much higher, putting Spain half-way be...