Carlsson, Mikael (contributor); Eriksson, Stefan (contributor) - 2006
in other firms (congestion). According to efficiency wage and bargaining theory, wages are set above the market clearing … bargaining theory, wages are set above
the market clearing level and employment is determined by labor demand. To compare … and
IZA, nils.gottfries@nek.uu.se.
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1. Introduction
The traditional Keynesian view of the labor market is that wages …