This paper reports on the results of a research carried out during 1993-94 aiming at studying street sellers as an informal sector activity and a source of socio-economic problems in Shiraz, Iran. This study makes use of two Logit models in order to present a unified framework depiciting the factors that seem to affect the developmeht of informal sector activities. The first model looks at thos...

The rate of job-to-job transitions is twice as large today as the rate at which workers move from employment to unemployment. I demonstrate that, under plausible specifications, the basic job-ladder model — the workhorse model of the literature on on-the-job search — has no chance of matching the extent of job-to-job transitions. Moreover, it cannot account for the low search effort exerted by ...

I show that the presence of informed buyers is necessary but not always su cient for producers to use prices as signals of product quality. A su ciently high fraction of informed buyers eliminates the lemons problem. A small fraction of informed buyers mitigates the lemons problem, provided that buyers' prior belief of high quality is su ciently pessimistic : price reveals high quality at a sig...

We develop a dynamic equilibrium model of labor demand with adverse selection. Firms learn the quality of newly hired workers after a period of employment. Adverse selection makes it costly to hire new workers and to release productive workers. As a result, firms hoard labor and under-react to labor demand shocks. The adverse selection problem also creates a market for temporary workers. In equ...

We use a rich new body of data on the experiences of unemployed job-seekers to determine the sources of wage dispersion and to create a search model consistent with the acceptance decisions the job-seekers made. From the data and the model, we identify the distributions of four key variables: offered wages, offered non-wage job values, the value of the job-seeker’s non-work alternative, and the...