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| Boxes and Available Datasets | |
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| Preface and Acknowledgments | |
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| Symbols and Acronyms | |
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| Overview | |
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| A Few Key Definitions | |
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| The Reservation Wage and the Value of a Job | |
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| From Individual to Aggregate Labor Supply | |
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| The Value of a Job | |
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| A Perfect Labor Market Equilibrium | |
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| Labor Market Institutions | |
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| Acting on Prices | |
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| Acting on Quantities | |
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| Institutional Interactions | |
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| Why Do Labor Market Institutions Exist? | |
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| Reforms of Labor Market Institutions | |
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| Review Questions and Exercises | |
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| Technical Annex: A Simple Static Framework | |
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| A Competitive Labor Market | |
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| Labor Market Institutions | |
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| The Wedge | |
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| Product Market Competition and the Employment Bias of Institutions | |
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| Minimum Wages | |
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| Cross-Country Comparisons | |
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| Theory | |
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| A Perfect Labor Market | |
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| An Imperfect Labor Market | |
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| Empirical Evidence | |
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| Studies Based on Firm-Level Data | |
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| Studies Based on Natural Experiments | |
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| Studies Based on Workers' Histories | |
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| Policy Issues | |
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| Should the Minimum Wage Be Reduced or Increased? | |
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| Should There Be a Youth Minimum Wage? | |
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| Interactions with Other Institutions | |
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| Why Does a Minimum Wage Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Minimum Wage Revisited | |
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| Minimum Wage and Monopsony | |
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| Bargaining or Government Setting? | |
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| Efficiency Wages | |
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| Unions and Collective Bargaining | |
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| Measures and Cross-Country Comparisons | |
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| Union Density | |
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| Coverage and Excess Coverage | |
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| Centralization and Coordination | |
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| Strike Activity | |
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| Theory | |
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| Collective Bargaining | |
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| Union Membership | |
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| Strikes | |
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| Empirical Evidence | |
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| Effects of Unions on Wages | |
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| Bargaining Coordination, Union Density, and Unemployment | |
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| Policy Issues | |
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| Do Unions Increase Efficiency? | |
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| Should Collective Bargaining Be Decentralized? | |
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| Interactions with Other Institutions | |
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| Why Do Unions Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Unions Revisited | |
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| How Strong Should Unions Be to Be Efficient? | |
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| Deriving the Contract Curve | |
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| Antidiscrimination Legislation | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| A Perfect Labor Market | |
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| An Imperfect Labor Market | |
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| Empirical Evidence | |
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| Unconditional Gender Employment and Earnings Gaps | |
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| Empirical Evidence on Discrimination in the Labor Market | |
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| Policy Issues | |
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| Equal Pay Legislation | |
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| Affirmative Action | |
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| Interactions with Other Institutions | |
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| Why Does Antidiscrimination Legislation Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Discrimination | |
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| Prejudice in a Competitive Labor Market | |
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| Monopsony and Gender Discrimination | |
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| Unobserved Heterogeneity in a Correspondence Study | |
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| Regulation of Working Hours | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| A Perfect Labor Market | |
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| Labor Supply: Overtime Pay and Availability of Part-Time Work | |
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| Labor Demand and the Choice between Hours and Workers | |
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| An Imperfect Labor Market | |
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| Short-Time Work | |
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| Regulating Weekly Working Hours | |
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| Empirical Evidence | |
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| Working Hours | |
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| Part-Time Work | |
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| Policy Issues | |
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| Should Governments Regulate Working Hours? | |
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| Should Governments Subsidize STW? | |
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| Interactions with Other Institutions | |
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| Why Does Regulation of Working Hours Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Intensive and Extensive Margins | |
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| Early Retirement Plans | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| Empirical Evidence | |
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| Age and Employment | |
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| Age and Productivity | |
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| Policy Issues | |
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| Should the Mandatory Retirement Age Be Increased? | |
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| Should Early Retirement Programs Be Phased Out? | |
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| Interactions with Other Institutions | |
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| Why Do Early Retirement Programs Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Optimal Retirement Age | |
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| Family Policies | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| Subsidized Childcare | |
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| Mandated Parental Leave | |
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| Effects on Fertility | |
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| Empirical Evidence | |
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| Policy Issues | |
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| Should Public Policies Encourage Mothers to Work? | |
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| Who in the Family Should Receive the Subsidy? | |
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| Interactions with Other Institutions | |
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| Why Do Family Policies Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Family Policies | |
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| Childcare Facilities | |
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| The Surplus from Home Production | |
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| The Unitary and Collective Models of the Household | |
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| Education and Training | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| A Perfect Labor Market | |
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| An Imperfect Labor Market | |
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| Empirical Evidence | |
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| Returns to Schooling | |
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| Estimating the Returns to Schooling | |
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| On-the-Job Training | |
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| Policy Issues | |
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| Should There Be a Compulsory Schooling Age? | |
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| Should Governments Subsidize In-Company Training? | |
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| Interactions with Other Institutions | |
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| Why Do Governments Subsidize Education and Training? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Education and Training | |
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| Optimal Years of Schooling | |
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| Signaling | |
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| Derivation of the Mincer Equation | |
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| Who Pays for General Training? | |
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| Migration Policies | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| A Perfect Labor Market | |
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| An Economy with Wage Rigidities | |
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| What Drives Migration Decisions? | |
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| Effects on Income Distribution of Skill-Biased Migration | |
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| Empirical Evidence | |
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| Labor Market Effects of Immigration | |
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| Fiscal Effects of Immigration | |
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| Labor Market Performance of Migrants | |
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| Labor Market Performance of Immigrant Children | |
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| Policy Issues | |
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| Closing the Welfare Door? | |
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| Adopting a Points System? | |
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| Interactions with Other Institutions | |
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| Why Do Migration Policies Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Net Gains from Migration | |
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| Employment Protection Legislation | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| A Neutrality Result | |
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| Removing Risk Neutrality | |
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| EPL with Rigid Wages | |
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| EPL as a Tax | |
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| Two-Tier Regimes | |
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| Empirical Evidence | |
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| Cross-Country Analyses | |
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| Studies Based on Firm and Worker Data | |
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| Endogeneity of EPL | |
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| Policy Issues | |
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| How Much Protection Should EPL Provide? | |
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| Should There Be a Single Employment Contract? | |
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| Interactions with Other Institutions | |
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| Why Does EPL Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: When Is EPL Efficient? | |
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| Unemployment Benefits | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| A Perfect Labor Market | |
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| An Imperfect Labor Market | |
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| Empirical Evidence | |
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| Effects of UBs on Unemployment Duration | |
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| Effect of UBs on Post-unemployment Outcomes | |
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| Policy Issues | |
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| Should the Generosity of UBs Vary over the Business Cycle? | |
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| Is Moral Hazard All That Matters? | |
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| Interactions with Other Institutions | |
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| Why Do UBs Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Search Theory and Duration Models | |
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| Search Theory | |
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| Duration Models | |
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| Active Labor Market Policies | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| Empirical Evidence | |
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| Experimental Studies | |
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| Nonexperimental Studies | |
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| Policy Issues | |
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| Do We Need Public Employment Services? | |
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| Do We Need Activation Policies? | |
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| Interactions with Other Institutions | |
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| Why Do ALMPs Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: ALMP | |
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| The Statistical Foundations of the Matching Function | |
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| Activating Unemployed Workers | |
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| Payroll Taxes | |
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| Measures and Cross-Country Comparisons | |
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| Theory | |
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| A Perfect Labor Market | |
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| An Imperfect Labor Market | |
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| Empirical Evidence | |
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| Policy Issues | |
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| How to Make Work Pay? | |
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| How to Pay and Target Beneficiaries | |
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| Interactions with Other Institutions | |
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| Why Do Payroll Taxes Exist? | |
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| Suggestions for Further Reading | |
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| Review Questions and Exercises | |
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| Technical Annex: Payroll Taxes | |
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| Taxes, Benefits, and the Structure of Taxation | |
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| General Equilibrium Effects of Taxes | |
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| References | |
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| Name Index | |
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| Subject Index | |