This paper considers a dynamic matching model with imperfectly observable worker effort. In equilibrium, the wage … distribution is truncated from below by a no-shirking condition. This downward wage rigidity induces the same type of inefficient …

vs. sticky wages, interactions at the firm level between price and wage-setting, alternative forms of hiring frictions …, search on-the-job and endogenous job separation. Models with wage stickiness and right-to-manage bargaining or with firm …

public competitions brings with it a substantial wage premium (ranging from 7 to 32%). Informal networks bring with them a … wage penalty (-6.5%) in the state sector, where formal hiring methods are common, and a wage premium (6.3%) in social … in job search methods between state and private organisations explain from 50% to 100% of the conditional wage …

This paper presents estimates based on individual data of downward nominal and real wage rigidities for thirteen … Wage Flexibility Project, whereby resistance to nominal and real wage cuts is measured through departures of observed … individual wage change histograms from an estimated counterfactual wage change distribution that would have prevailed in the …

We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment … in dual labor markets. Outsourcing promotes wage dispersion between the high-skilled and low-skilled workers. Higher … domestic low-skilled wage tax, higher payroll tax and lower wage tax exemption increase optimal outsourcing... …