CABRALES, ANTONIO; CALVO-ARMENGOL, ANTONI; PAVONI, NICOLA - In: Review of Economic Studies 75 (2008) 1, pp. 65-98
We study the earning structure and the equilibrium assignment of workers to firms in a model in which workers have social preferences, and skills are perfectly substitutable in production. Firms offer long-term contracts, and we allow for frictions in the labour market in the form of mobility...