We study how search frictions in the labor market affect firms’ ability to recruit talented workers. In a field experiment Ethiopia, we show that an employer can attract more applicants by offering small monetary incentive for making job application. Estimates from structural model suggest intervention is effective because cost of application large, and positively correlated with jobseeker abil...

This paper uses administrative data from Sweden to document trends in the labor market returns skills. Between 1992 and 2013, economic return noncognitive skill—a psychologist-assessed measure of teamwork leadership skill—roughly doubled. The cognitive skill was relatively stable decreased modestly during 2000s, however. Among men with similar levels education, is higher than skill. increasing ...

Compensation of most US public school teachers is rigid and solely based on seniority. This paper studies the effects a reform that gave districts in Wisconsin full autonomy to redesign teacher pay schemes. Following some switched flexible compensation. Using expiration preexisting collective bargaining agreements as source exogenous variation timing changes pay, I show introduction raised sala...

This paper studies wage setting in a directed search model of multiworker firms facing within-firm equity constraints on wages. The reduce wages, as exploit their monopsony power over existing workers, rendering wages less responsive to productivity doing so. They also give rise time inconsistency the dynamic firm problem, face elastic labor supply short run than long run, making commitment fut...

Using new establishment-by-occupation microdata, we show that the use of discretionary wage setting significantly expanded in 1970s and 1980s. Increasingly, wages for blue-collar workers were not standardized by job title or seniority but instead subject to managerial discretion. When establishments abandoned pay rates, fell, particularly lowest-paid a those previously paid above market rates. ...

Population aging is expected to slow US economic growth. We use variation in the predetermined component of population across states estimate impact on growth GDP per capita for 1980–2010. find that each 10 percent increase fraction age 60+ decreased by 5.5 percent. One-third reduction arose from slower employment growth; two-thirds due labor productivity Labor compensation and wages also decli...

Moonlighting is increasingly popular in OECD countries, with 5 to 10 percent of workers holding two or more jobs. However, little known about the responsiveness moonlighting financial incentives due lack identifying variation. This paper studies a unique reform Germany that allowed hold small secondary jobs tax-free, decreasing marginal tax rate by between 19.5 66 pp. I show resulted dramatic i...

We estimate intergenerational income mobility in Italy using administrative data from tax returns. Our estimates of are higher than prior work survey and indirect methods. The rankrank slope parent-child is 0.22, compared to 0.18 Denmark 0.34 the United States. probability that a child reaches top quintile national distribution starting family bottom 0.11. uncover substantial geographical varia...

I conduct a survey experiment to study the relationship between people’s beliefs about size of gender wage gap and their demand for policies aimed at mitigating it. Beliefs causally affect support equal pay legislation affirmative action programs, but cannot account polarization in policy views by partisanship gender. Changes seem be driven changes discrimination labor markets fairness concerns...

In this paper, I document that workers in larger cities have significantly more occupational options than smaller ones. They are able to form better matches and earn higher wages. also note differences occupation reallocation patterns across cities. develop a dynamic model of choice microfounds agglomeration economies captures the empirical patterns. The calibration suggests match quality accou...