nep-cbe New Economics Papers
on Cognitive and Behavioural Economics
Issue of 2006‒09‒30
two papers chosen by
Marco Novarese
Universita del Piemonte Orientale

  1. Studying Labor Market Institutions in the Lab: Minimum Wages, Employment Protection and Workfare By Armin Falk; David Huffman
  2. Mutual Absolute Continuity of Multiple Priors By Larry G. Epstein; Massimo Marinacci

  1. By: Armin Falk (IZA Bonn and University of Bonn); David Huffman (IZA Bonn)
    Abstract: A central concern in economics is to understand the interplay between institutions and labor markets. In this paper we argue that laboratory experiments are a powerful tool for studying labor market institutions. One of the most important advantages is the ability to implement truly exogenous institutional change, in order to make clear causal inferences. We exemplify the usefulness of lab experiments by surveying evidence from three studies, each of which investigates a different, crucial labor market institution: minimum wage laws, employment protection legislation and workfare.
    Keywords: laboratory experiments, minimum wages, employment protection legislation, workfare
    JEL: I38 K31 J3
    Date: 2006–09
  2. By: Larry G. Epstein; Massimo Marinacci
    Abstract: This note provides a behavioral characterization of mutually absolutely continuous multiple priors.
    Keywords: Mutual absolute continuity, Multiple priors
    JEL: D81
    Date: 2006

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