Gábor Kézdi

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This paper focuses on standard error estimation in Fixed-Effects panel models if there is serial correlation in the error process. Applied researchers have often ignored the problem, probably because major statistical packages do not estimate robust standard errors in FE models. Not surprisingly, this can lead to severe bias in the standard error estimates,(More)
The paper analyses regional relative wages using individual and firm-level data from Hungary 1986-96. In regions hit hard by the transition shock labour costs fell substantially; the estimated elasticities of wages with respect to regional unemployment were in a range typical of mature market economies already in 1992-93. In later stages of the transition(More)
In 2009 all ECB publications feature a motif taken from the €200 banknote. 1 This paper has been prepared in the context of the Eurosystem Wage Dynamic Network (WDN) research project. We are very grateful seminar participants at the Bank of Spain and at the 2009 AEA meeting for their useful comments and suggestions. We also thank all members of the WDN(More)
Regional unemployment and non-participation rates are higher, more disperse, and more stable in Europe than in the U.S. This paper helps understand what may cause this phenomenon. Specifically, it looks at the role of migration in regional differences. I analyze the adjustment mechanisms of regional labor markets in seven countries of continental Europe(More)
Using survey data on expectations and the composition of household savings, this paper aims at explaining the stockholding puzzle: the low stock market participation despite high historical performance of stocks. We estimate a joint model of stockholding and survey answers, both based on stock market expectations. The estimated level of risk tolerance that(More)
This paper documents and decomposes the test score gap between Roma and non-Roma 8 graders in Hungary in 2006. Our data connect national standardized test scores to an individual panel survey with detailed data on ethnicity and family background. The test score gap is approximately one standard deviation for both reading and mathematics, which is similar to(More)
We analyze the magnitude and the causes of the low formal employment rate of the Roma in Hungary between 1993 and 2007. The employment rate of the Roma dropped dramatically around 1990. The ethnic employment gap has been 40 percentage points for both men and women and has stayed remarkably stable. Differences in education are the most important factor(More)
We propose a model of job search with reference-dependent preferences, where the reference point is given by recent income. Newly unemployed individuals search hard given that they are at a loss, but over time they get used to lower income, and thus reduce search effort. In anticipation of a benefit cut their search effort rises again, to then decline once(More)