| 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 |
| URL: |
http://d.repec.org/n?u=RePEc:iza:izadps:dp2310&r=cbe |