Labor market search-and-matching models posit supply-side responses to minimum wage increases that may lead improved matches and lessen or even reverse negative employment effects. Using event study analysis of recent increases, we find these changes do not affect the likelihood searching, but transitory spikes in search effort by individuals already looking for work. These results are driven c...

The National Literacy Movement (GLN) refers to the World Economic Forum (WEF), and Boston Consulting Group (BCG) states that literacy numeracy is one of basic must be mastered in 21st century. However, PISA results show Indonesian students have low skills. Ministry Education followed up replace Examination (UN) with a Minimum Competency Assessment (AKM). AKM an essential competency assessment t...

It is well-known that, in static models, minimum wages generate positive worker rents and, consequently, inefficiently low effort. We show that this result does not necessarily extend to a dynamic context. The reason is that, in repeated employment relationships, firms may exploit workers’ future rents to induce excessively high effort.