In theory, non wage job characteristics (e.g. type of work, working conditions, job security) are potential determinants of wage dispersion and labor market turnover (see Rosen, 1986). However, very different estimates of workers’ Marginal Willingness to Pay (MWP hereafter) for these amenities have been obtained using either cross-sectional data on wages and amenities, or job duration data. Hwang, Mortensen and Reed (1998) build a structural on-the-job search model that provides an explanation for these conflicting results. In this paper, we take partial equilibrium version of their model to data on European countries.
In a perfectly competitive labor market, there must exist positive wage differentials for disamenities (Smith, 1976). The literature on hedonic models, initiated by Rosen (1974, 1986), provides a relevant theoretical framework for the analysis of these compensating differentials, suggesting to estimate workers’ MWP with cross-sectional hedonic wage regressions. However, this method has not yielded strong empirical evidence of compensating differentials. Typical estimates in this literature, starting with Thaler and Rosen (1975), are of small order of magnitude, often less than five percent of the wage, if not insignificantly different from zero or wrong-signed.
Milk coagulation is the basic step in cheese manufacturing. Milk clotting enzymes are the primary active agents in cheese making, which involves the enzyme-mediated cleavage of kaba-casein at the peptide bond Phe 105-Met 106 that renders the casein micelles unstable and eventually causes aggregation that yields a clot and a gel afterwards .
This paper incorporates endogenous evolution of illiquid human wealth into the standard framework of optimal portfolio selection. The presence of human capital investment (rather than an exogenous stream of labor income) helps explain some patterns of the life-cycle asset allocation observed in the data, as well as generate new predictions.
Despite the conventional wisdom of financial planners as well as the normative prescriptions of portfolio theory, which suggest that the share of stocks in households’ portfolio should decrease with age, young people hold very little stocks. This observation is the driving force behind the approach of Constantinides, Donaldson, and Mehra (2002) to addressing the equity premium puzzle. Moreover, conditional on participation, researchers have found that the share of equities in investors’ portfolios display increasing or hump-shaped profiles over the life-cycle (e.g. Poterba and Samwick (1995) and Ameriks and Zeldes (2001)). Again, this is in stark contrast with the standard life-cycle portfolio advice that young households should allocate most of their portfolio to equities, and reduce this allocation as the present value of their future labor income decreases with age (eg. Jagannathan and Kocherlakota (1996)).
