This paper introduces staggered right-to-manage wage bargaining into a NewKeynesian business cycle model. Our key result is that the model is able to generatepersistent responses in output, inflation, and total labor input to both neutraltechnology and monetary policy shocks. Furthermore, we...

This paper addresses the large degree of frictional wage dispersion in US data.The standard job matching model without on-the-job search cannot replicate thispattern. With on-the-job search, however, unemployed job searchers are more willingto accept low wage offers since they can continue to...

Over the last decades, empirical research on subjective well-being in the socialsciences has provided a major new stimulus to the discourse on individual happiness.Recently this research has also been linked to economics where reported subjective wellbeingis often taken as a proxy measure for...