destruction given the wage contract between matched firms and workers. The outcome is a model for the flow of new jobs and …

This paper studies a model of human capital accumulation with real wage rigidity. It is shown that the arbitrage …

We design and field an innovative survey of unemployment insurance (UI) recipients that yields new insights about wage … stickiness on the layoff margin. Most UI recipients express a willingness to accept wage cuts of 5-10 percent to save their jobs … wage cuts would save their jobs. For lost union jobs, 45 percent say contractual restrictions prevent wage cuts. Among …

and by the need to reallocate workers across productive activities. The duration of unemployment and jobs and wage … of alternative wage determination mechanisms are explored, including the frequently studied non-cooperative wage … bargaining and wage posting by firms. We use the framework to study the influence of alternative labor market institutions and …

We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage …-order equivalent in an economy with flexible incentive pay and without bargaining, vis-á-vis an economy with rigid wages. Second, wage …% of wage cyclicality in the data arises from incentives. A standard model without incentives calibrated to weakly …

workplaces further flexibility to adapt collective agreements to specific circumstances would help align wage growth with …