• Abstract
  • Non-technical summary
  • 1 Introduction and motivation
  • 2 The baseline model
  • 2.1 Households, consumption and saving
  • 2.2 Firms
  • 2.3 The labour market
  • 2.4 Wage bargaining
  • 2.5 Vacancy posting
  • 2.6 Monetary policy, fi scal policyand market clearing
  • 3 Stylised facts and the baseline economy
  • 3.1 Calibration of the model economies
  • 3.2 Stylised facts – the transmissionof monetary policy
  • 3.3 Effects of a monetary policyshock in the baseline
  • 4 Right-to-manage bargaining
  • 5 Wage rigidity
  • 5.1 Effi cient bargaining
  • 5.2 Right-to-manage bargaining
  • 6 Real rigidities arising within theindividual fi rm
  • 7 Contemporaneous hiring
  • 8 Variants of the vacancy posting process
  • 8.1 Employment adjustment costs convexin the hiring rate
  • 8.2 Vacancy costs as sunk costs
  • 9 On-the-job search
  • 10 Endogenous job destruction
  • v11 Conclusions
  • References
  • Appendix
  • European Central Bank Working Paper Series