This paper investigates the change in wages associated with a spell of unemployment. The novelty lies in using monthly data from the Survey of Income and Program Participation (SIPP) to analyze the dynamics of those wage changes across different business cycles. The level of education or the sector of re-employment affects the change in wages following an unemployment spell differently across d...

In Lentz and Mortensen (2005), we formulate and estimate a market equilibrium model of endogenous growth through product innovation in the spirit of Klette and Kortum (2004). In this paper, we provide a quantitative solution to the social planner’s problem in the modeled environment. We find that the optimal growth rate is over three times larger than its value in market equilibrium and that th...

This paper argues that the Phillips curve–wage curve controversy cannot be settled within the conventional testing frameworks and suggests an alternative test, which builds on the model of Blanchard and Katz (1997). Using long macro data for the OECD countries, the evidence gives very strong support for the Phillips curve and indicates that wage behaviour is no different among the OECD countrie...

This paper investigates the differences in the matching process of job seekers and vacancies to be filled between different educational and occupational groups. To investigate this issue, matching functions are estimated across different occupations and educational cohorts, that is, on an even lower level of aggregation than previously investigated in the literature, and along different dimensi...

The New Deal for Young People (NDYP) is one of the main components of the UK government’s Welfare-to-Work strategy aimed at raising employment and reducing benefit dependency. It combines elements of an active labour market programme with a stricter benefit regime. This paper evaluates its impact on the wider economy, emphasising the importance of the programme’s effect on wage pressure, which ...

Did European Labor Markets Become More Competitive in the 1990s? Evidence from Estimated Worker Rents This paper analyses the evolution of quantitative measures of employee rents in Europe during the nineties, using the European Household Panel Survey. One looks at two class of measures: wage differentials between workers along industry and firm size dimensions, and estimated welfare difference...

ABOUT THE AUTHORS: Peggy Cooper Davis is the John S.R. Shad Professor of Lawyering and Ethics at New York University and Director of its Experiential Learning Lab. Ebony Coletu is an Assistant Professor of Rhetoric and Composition at the American University in Cairo and Associate Director of the Experiential Learning Lab at New York University. Bonita London is an Assistant Professor of Psychol...

The author proposes a neural-network-based explanation of how a brain might acquire intuitive expertise. The explanation is intended merely to be suggestive and lacks many complexities found in even lower animal brains. Yet significantly, even this simplified brain model is capable of explaining the acquisition of simple skills without developing articulable rules for behavior or a model of the...

unique physical and metaphysical needs, will allow us to go beyond our current classification of diseases and use skillful means to apply the right medicine, whatever its derivation. We have come to accept the vertical taxonomy of medical specialization as fact, and we use it to navigate diagnosis and treatment. Yet perhaps a horizontal taxonomy built on deeper understanding of basic processes ...