We analyse the relations between firm's debt and bargained wage level and its implications for the optimal choice of the capital structure. Similarly to Hart and Moore (1991), we place the analysis of the feasible debt contracts in a strategic bargaining setting, in which both the management and...

The simple bargaining mode presented here analyses the effect of a predetermined level of debt repayment commitments on the wage bargaining process between a firm and its workforce. Even if the bargaining process between a firm and its workforce. Even if the bargaining structure is basically...