Related papers: Coarse Wage-Setting and Behavioral Firms

We develop an Empirical Bayes grading scheme that balances the informativeness of the assigned grades against the expected frequency of ranking errors. Applying the method to a massive correspondence experiment, we grade the racial biases…

Although being a very popular sport in many countries, soccer has not received much attention from the scientific community. In this paper, we study soccer from a complex network point of view. First, we consider a bipartite network with…

We argue that the recent growth in income inequality is driven by disparate growth in investment income rather than by disparate growth in wages. Specifically, we present evidence that real wages are flat across a range of professions,…

Reward models (RMs) play a crucial role in aligning large language models (LLMs) with human preferences and enhancing reasoning quality. Traditionally, RMs are trained to rank candidate outputs based on their correctness and coherence.…

We develop an alternative theory to the aggregate matching function in which workers search for jobs through a network of firms: the labor flow network. The lack of an edge between two companies indicates the impossibility of labor flows…

I study altruistic choices through the lens of a cognitively noisy decision-maker. I introduce a theoretical framework that demonstrates how increased cognitive noise can directionally affect altruistic decisions and put its implications to…

While microtask crowdsourcing provides a new way to solve large volumes of small tasks at a much lower price compared with traditional in-house solutions, it suffers from quality problems due to the lack of incentives. On the other hand,…

Unemployment insurance transfers should balance the provision of consumption to the unemployed with the disincentive effects on the search behavior. Developing countries face the additional challenge of informality. Workers can choose to…

Clustering algorithms may unintentionally propagate or intensify existing disparities, leading to unfair representations or biased decision-making. Current fair clustering methods rely on notions of fairness that do not capture any…

Financial instability has become a significant issue in today's society. While research typically focuses on financial aspects, there is a tendency to overlook time-related aspects of unstable work schedules. The inability to rely on…

We study the consequences of job markets' heavy reliance on referrals. Referrals lead to more opportunities for workers to be hired, which lead to better matches and increased productivity, but also disadvantage job-seekers with few or no…

In this paper we study the effect on crowd worker efficiency and effectiveness of the dominance of one class in the data they process. We aim at understanding if there is any positive or negative bias in workers seeing many negative…

Financial price changes obey two universal properties: they follow a power law and they tend to be clustered in time. The second regularity, known as volatility clustering, entails some predictability in the price changes: while their sign…

We propose a model of labor market sector self-selection that combines comparative advantage, as in the Roy model, and sector composition preference. Two groups choose between two sectors based on heterogeneous potential incomes and group…

Crowdsourcing models applied to work on mobile devices continuously reach new ways of solving sophisticated problems, now with a use of portable advanced devices, where users are not limited to a stationary use. There exists an open problem…

When factorizing binary matrices, we often have to make a choice between using expensive combinatorial methods that retain the discrete nature of the data and using continuous methods that can be more efficient but destroy the discrete…

This paper aims to clarify the relationship between monetary policy shocks and wage inequality. We emphasize the relevance of within and between wage group inequalities in explaining total wage inequality in the United States. Relying on…

This paper proposes an addition to the firm-based perspective on intra-industry profitability differentials by modelling a business organisation as a complex adaptive system. The presented agent-based model introduces an endogenous…

As more individuals consider permanently working from home, the online labor market continues to grow as an alternative working environment. While the flexibility and autonomy of these online gigs attracts many workers, success depends…

With the international business landscape becoming more crisis-ridden as risks proliferate, how do the professionals who implement corporate social initiatives in high-risk environments perceive their work, and what can this reveal about…