Gielen, Anne C.; van Ours, Jan C. - 2021
In a dynamic labor market worker-firm matches dissolve frequently causing workers to separate and firms to look for … replacements. A separation may be initiated by the worker (a quit) or the firm (a layoff), or may result from a joint decision. A … dissolution of a worker-firm match may be inefficient if it can be prevented by wage renegotiation. In this paper we study worker …