Self-Employment: A Way to End Unemployment? Empirical Evidence from German Pseudo-Panel Data This paper contributes to the policy-relevant question whether self-employment is a way out of (long-term) unemployment. We estimate the relationship between the entry rate into selfemployment and previous (long-term) unemployment on the basis of pseudo-panel data for Germany in the period 1996-2002. Th...

This paper reports on a two-tiered experiment designed to separately identify the selection and effort margins of pay for performance (P4P). At recruitment stage, teacher labor markets were randomly assigned “pay-for-percentile” or fixed-wage contract. Once recruits placed, an unexpected, incentive-compatible, school-level re-randomization was performed so that some teachers who applied contrac...

Justified communication equilibrium (JCE) is an refinement for signaling games with cheap-talk communication. A strategy profile must be a JCE to stable outcome of nonequilibrium learning when receivers are initially trusting and senders play many more times than receivers. In the model, counterfactual “speeches” that have been informally used motivate past refinements messages actually sent. S...

Online professional networking platforms are widely used and may help workers to search for obtain jobs. We run the first randomized evaluation of training work seekers join use one largest platforms, LinkedIn. Training increases end-of-program employment rate by 10 percent (7 percentage points), this effect persists at least 12 months. The available employment, platform use, job data suggest t...

To finance unemployment insurance, states raise payroll tax rates on employers who engage in layoffs. Tax are, therefore, highest for firms after downturns, potentially hampering labor-market recovery. Using full-population, administrative records from Florida, I estimate the effect of these increases firm behavior leveraging a regression kink design schedule. hikes reduce hiring and employment...

To what degree can labor reallocation mitigate the economic consequences of weather-driven agricultural productivity shocks? I estimate that temperature-driven reductions in demand for India are associated with increases nonagricultural employment. This suggests ability sectors to absorb workers may play a key role attenuating shocks. Exploiting firm-level variation propensity workers, relative...

This paper measures excess labor supply in equilibrium. We induce hiring shocks—which employ 24 percent of the force external month-long jobs—in Indian local markets. In peak months, wages increase instantaneously and aggregate employment declines. lean consistent with severe rationing, are unchanged, positive spillovers on remaining workers, indicating that over a quarter is rationed. At least...

Together with a sense of entering a New Economy, the US experienced in the second half of the 1990s an economic expansion, a stock market boom, a financing boom for new firms and productivity gains. In this paper, we propose an interpretation of these events within a general equilibrium model with financial frictions and decreasing returns to scale in production. We show that the mere prospect ...

We analyze the following questions under imperfect labour markets. How does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit sharing before wage formation or decide for profit sharing after wage formation? What is the relationship between outsourcing, profit sharing, and equilibrium unemployment? We find that in both scenario...

We examine empirically the effect of international outsourcing on labour demand at the level of the individual plant. We do so by estimating a dynamic model of plant level labour demand, using a Generalised Method of Moments estimator. We use plant level data for the Irish Electronics sector, an industry that has expanded rapidly over the last decade and that has witnessed significant offshorin...