This paper builds, identifies and estimates a model of the labor market that features strategic interactions in wage setting and two-sided heterogeneity in order to shed light on the sources of wage inequality. We provide a tractable characterization of the model equilibrium and demonstrate its...

This chapter surveys recent advances in personnel economics. We begin by presenting evidence showing substantial and persistent productivity variation among workers in the same roles. We discuss new research on incentives and compensation; hiring practices; the influence of managers and peers;...

New methods and applications in Macroeconomics -- New methods and applications in Microeconomics -- New methods and applications in International Economics -- New methods and applications in Agricultural Economics -- New methods and applications in Financial Economics -- New methods and...

This article examines how collective bargaining through unions and workplace codetermination through works councils relate to labor market imperfections and how labor market imperfections relate to employer wage premia. Based on representative German plant data for the years 1999–2016, the...