Interactions between Labor and Financial Markets

Place: IZA, Schaumburg-Lippe-Str. 7-9, Bonn, Germany
Date: May 30-31, 2003
Organizers: Torben Andersen (University of Aarhus and IZA) and Winfried Koeniger (IZA)

The workshop focused on an emerging area of economic research with participants discussing various aspects of labor and financial market interactions. An emphasis lay on an analysis of the microstructure of these interactions, including the effects of corporate governance and product market competition on managerial compensation and workers’ wages. Moreover, the participants investigated the role of firms providing partial insurance to workers, the sorting of workers into firms with different risks and the interactions between self-employment and financial wealth. The workshop then went on to discuss the macro level effects of capital market imperfections on employment, job creation and rent sharing. The seminar also incorporated a politico-economic perspective by providing an economic analysis of why labor markets tend to be more regulated when capital markets are less efficient.

Friday, May 30:
	Session: Corporate Governance and Labor Markets
13:30 - 14:45	Vicente Cunat (Universitat Pompeu Fabra) and Maria Guadalupe (London School of Economics and IZA) "Managerial Compensation and Product Market Competition" Discussant: Hielke Buddelmeyer (IZA)
14:45 - 16:00	Pablo Ruiz-Verdu (Universidad Carlos III de Madrid) "Corporate Governance and the Division of Rents Among Shareholders, Managers and Workers" Discussant: Guido Friebel (University of Toulouse and IZA)
16:00 - 16:30	Coffee / Tea Break
	Session: Risk and Firms
16:30 - 17:45	Guido Friebel (University of Toulouse and IZA) and Mariassunta Gianetti (Stockholm School of Economics) "Fighting for Talent: Risk-Shifting, Corporate Volatility and Organizational Change" Discussant: Pablo Ruiz-Verdu (Universidad Carlos III de Madrid)
17:45 - 19:00	Luigi Guiso (Università di Sassari), Luigi Pistaferri (Stanford University) and Fabiano Schivardi (Bank of Italy) "Insurance within the Firm" Discussant: Ken Troske (University of Missouri and IZA)
20:00	Conference Dinner at Bierhaus Machold, Heerstr. 52
Saturday, May 31
	Session: Macroeconomics of Labor and Credit Market Interactions I
09:00 - 10:15	Etienne Wasmer and Philippe Weil (Free University of Brussels and IZA) "The Macroeconomics of Labor and Credit Market Imperfections" Discussant: Winfried Koeniger (IZA)
10:15 - 10:30	Coffee Break
10:30 - 11:45	Giuseppe Bertola (European University Institute) and Winfried Koeniger (IZA) "Consumption Smoothing and the Structure of Labor and Credit Markets" Discussant: Etienne Wasmer (Free University of Brussels and IZA)
11:45 - 13:00	Thomas Philippon (MIT) and Olivier Blanchard (MIT and IZA) "The Decline of Rents, and the Rise and Fall of European Unemployment" Discussant: Erkki Koskela (University of Helsinki)
13:00 - 13:45	Lunch
	Session: Macroeconomics of Labor and Credit Market Interactions II
13:45 - 15:00	Silvio Rendon (Universidad Carlos III) "Job Creation and Investment in Imperfect Capital and Labor Markets" (download slides for this paper) Discussant: Marco Leonardi (IZA)
15:00 - 16:15	Erkki Koskela (University of Helsinki) and Rune Stenbacka (Swedish School of Economics) "Profit Sharing, Credit Market Imperfections and Equilibrium Unemployment" Discussant: Torben Andersen (University of Aarhus and IZA)
16:15 - 16:30	Coffee / Tea Break
	Session: Venture Capital and the Labor Market
16:30 - 17:45	Stefan Hochguertel (Free University of Amsterdam) "The Dynamics of Self-Employment and Household Wealth: New Evidence from Panel Data" Discussant: Alexandru Voicu (IZA)
17:45 - 19:00	Rainer Fehn (University of Munich) and Thomas Fuchs (ifo Institute) "Capital Market Institutions and Venture Capital: Do They Affect Unemployment and Labour Demand?" Discussant: Stefan Hochguertel (Free University of Amsterdam)
20:00	Dinner

Email addresses of participants:
Torben Andersen	tandersen@econ.dk
Giuseppe Bertola	giuseppe.bertola@iue.it
Hielke Buddelmeyer	buddelmeyer@iza.org
Vicente Cunat	vicente.cunat@econ.upf.es
Guido Friebel	Guido.Friebel@hhs.se
Thomas Fuchs	fuchs@ifo.de
Luigi Guiso	guiso@tin.it
Stefan Hochguertel	shochguertel@feweb.vu.nl
Winfried Koeniger	koeniger@iza.org
Erkki Koskela	erkki.koskela@helsinki.fi
Marco Leonardi	leonardi@iza.org
Thomas Philippon	t_philippon@yahoo.com
Silvio Rendon	srendon@eco.uc3m.es
Pablo Ruiz-Verdu	prverdu@emp.uc3m.es
Kenneth Troske	troske@iza.org
Alexandru Voicu	voicu@iza.org
Etienne Wasmer	ewasmer@ulb.ac.be

For more information please contact:
Winfried Koeniger
IZA
P.O.Box 7240
53072 Bonn
Germany
email: koeniger@iza.org
fax: +49 (228) 38-94-512
Travel expenses and accommodations will be covered according to IZA travel guidelines.