Leif Danziger

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We use store-level data to document the exact process of changing prices and to directly measure menu costs at Žve multistore supermarket chains. We show that changing prices in these establishments is a complex process, requiring dozens of steps and a nontrivial amount of resources. The menu costs average $105,887/year per store, comprising 0.70 percent of(More)
The hypothesis that fertility is influenced not only by parents' own economic situations, but also by the number of parents' siblings and the economic opportunities and achievements of the grandparents when they were of childbearing age was investigated through use of data from Israel's 1977 Labor Mobility Survey. Selected for analysis was a subsample of(More)
The Elasticity of Labor Demand and the Optimal Minimum Wage Contrary to widespread belief, we show that low-pay workers might not generally prefer that the minimum wage rate be increased to a level where the labor demand is unitary elastic. Rather, there exists a critical value of elasticity of labor demand such that increases in the minimum wage rate make(More)
We develop a theoretical model regarding the migration of dual-earner couples and test it in the context of international migration. Our model predicts that the probability that a couple emigrates increases with the income of the primary earner, whereas the income of the secondary earner may affect the decision in either direction. We conduct an empirical(More)
An estimated dynamic general equilibrium model which features imperfectly competitive households, sticky nominal wages and costly labor input adjustment is shown to be consistent with several stylized aspects of U.S. postwar business cycle dynamics including the positive serial correlation of output, consumption, investment and employment growth over short(More)
In this paper we prove that a graduated minimum wage rate can provide a Pareto improvement of an optimal allocation with nonlinear taxation. The reason is that a graduated minimum wage rate makes it harder for the more productive workers to mimic the income of the less productive workers. We also show that in a utilitarian social welfare optimum, the(More)
Extension of Labor Contracts and Optimal Backpay This paper explains why a union and a firm might settle on a contract duration that may later be extended and characterizes the optimal backpay for the holdout period. It is shown that the choice between concluding a shorter contract that may be extended and immediately concluding a longer contract depends on(More)
This paper studies the assignment of decision makers to two committees that make decisions by a simple majority rule. There is an even number of decision makers at each of various skill levels and each committee has an odd number of members. Surprisingly, even with the symmetric assumptions in the spirit of Condorcet, a symmetric composition of committees(More)