The author of this article provides an example of how one might incorporate behavioral economics into teaching macroeconomics or labor economics at an undergraduate level. The focus is on two macroeconomic concepts--wage determination and the Phillips curve--and shows that the implications and conclusions of both models differ from their textbook…

The authors present a version of the Diamond-Mortensen-Pissarides model of unemployment that is accessible to undergraduates and preserve the dynamic structure of the original model. The model is solvable in closed form using basic algebra and admits a graphical representation useful for illustrating a variety of comparative statics. They show how…

A strong VET system is increasingly seen as essential to overcoming the current economic crisis in Europe. VET is seen as a powerful tool to assist in balancing labour market inefficiencies, increasing youth employment possibilities, and reducing skills mismatch. Its inherent flexibility and closeness to the labour market place VET in a good…

This article first provides an economic framework for understanding how an economic crisis affects children's educational outcomes; this framework shows that there are both negative (harmful) effects and positive (beneficial) effects on educational outcomes. A review of the empirical evidence suggests that the negative effects are typically…

Using store-level and aggregated Consumer Price Index data, we show that restaurant prices rise in response to minimum wage increases under several sources of identifying variation. We introduce a general model of employment determination that implies minimum wage hikes cause prices to rise in competitive labor markets but potentially fall in…

To increase the rate at which adult basic skills students advance to and succeed in college-level occupational programs, the Washington State Board for Community and Technical Colleges (SBCTC) developed the Integrated Basic Education and Skills Training, or I-BEST. In the I-BEST model, a basic skills instructor and an occupational instructor team…

Policy discussions about teacher quality and teacher "shortages" often focus on recruitment and retention of young teachers. However, attention has begun to focus on the incentive effects of teacher retirement benefit systems, particularly given their rising costs and the large unfunded liabilities. In this paper we analyze accrual of…

The implicit contract theory, a new explanation for the phenomena of involuntary unemployment, does not capture the salient characteristics of real work employment. By building on implicit contract theory, this paper takes into account circumstances ignored in the traditional model: (1) institutional characteristics of the labor market enhance…

A study examined the earnings losses suffered by a group of experienced workers who separated from their firms in the early and mid-1980s. The quarterly earnings histories of a large number of Pennsylvania workers covering the period 1974 through 1986 merged with employment information about their firms served as the data set. Workers' earnings…

Based on the National Longitudinal Surveys of over 10,000 men and women aged eighteen to twenty-seven who were interviewed annually from 1966 through 1971, this study investigates how the youth labor market operates and identifies its manpower problems that should be addressed by policymakers. A five-part recursive model is established for the…

An economic development model was formulated to foster and strengthen commerce and industry retention and expansion in the state of Illinois. The main thrust of the model was on increasing productivity, decreasing business failures, encouraging entrepreneurship, and creating a favorable business climate through community support. To meet these…

Data taken primarily from the Australian Youth Survey were used to model unemployment as a function of personal characteristics, family structure, and neighborhood composition using binomial probit estimation techniques. The cross-sectional model developed indicated that significant neighborhood effects on unemployment outcomes exist in high- and…

The different situations confronting young labor market entrants in different European countries may be described in terms of the following models: (1) the conditions of labor market entry are basically tied to the nature of the qualification acquired in initial training, experience accumulated in the labor market plays a very secondary role, and…

The rising wage inequality in U.S. urban labor markets during the 1980s was examined in a study of 20 metropolitan area labor markets. The study's perspective differs from the prevailing perspective on the problem in three ways: (1) it focuses on changes in the wage structure in a sample of local labor markets; (2) it examines changes in the…

This book examines the factors responsible for the difficulties being experienced by many young Canadians trying to find permanent jobs in a growing economy and explains how Canadian youths can make the best use of the opportunities offered by academic and other programs to find a satisfying life in the workforce. The following are among the…