…

We consider a model with frictional unemployment and staggered wage bargaining where hours worked are negotiated every period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence. The closer to zero this parameter, (i) the more...

A large part of group differences in wages comes from unobserved or unverifiable characteristics such as the intensity of human capital investments on-the-job. This is notably the classical argument to account for gender differentials. We build a framework in which training decisions are...