Firms differ substantially in the wages they pay to similar workers. Standard models of the labor market assume that workers have accurate beliefs about the differences in wages across firms, including in bargaining models and wage posting models with search. While this fundamental assumption remains untested, its violation—in the form of worker misperceptions about the […]

Microeconomic Insights

20.12.2024

Expanding renewable energy: lessons from Chile | Microeconomic Insights

Effective and economical expansion of renewable energy is one of the most urgent challenges for addressing climate change. Along with the transport sector, the electricity sector generates one of the largest shares of global greenhouse gas emissions. In addition, a significant part of the transport sector is expected to be electrified in the near future. […]

Microeconomic Insights

29.01.2025

The role of diagnostic skill: How and why it matters | Microeconomic Insights

When making these decisions, the typical expert will begin by assessing the likely effects of their options based on the specific case at hand. For instance, physicians aim to diagnose a patient’s underlying condition and evaluate potential treatment outcomes, and judges work to determine the facts of a crime and the likelihood of recidivism. The […]

Microeconomic Insights

25.02.2025

Private monopoly and restricted entry | Microeconomic Insights

Occupational licensing regulations are common across many service sectors, including health, education, transportation, and legal services. These regulations affect up to 20-30% of workers in both the U.S. and Europe, with considerable variation across states and countries; see for example Kleiner and Krueger (2010, 2013) and Koumenta and Pagliero (2019). General education and training requirements […]

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Microeconomic Insights

Economy

Worker Beliefs About Outside Options | Microeconomic Insights

Expanding renewable energy: lessons from Chile | Microeconomic Insights

The role of diagnostic skill: How and why it matters | Microeconomic Insights

Private monopoly and restricted entry | Microeconomic Insights

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