The aim of this Paper is to evaluate simultaneously market power and the incentives faced by carriers to improve … efficiency, taking into account the regulatory changes that have affected the European airline industry. We construct and …

’s productivity in a given firm depends on a worker-firm specific component, unobservable for the firm. Firms offer wage contracts …

Do firms have the right incentives to innovate in the presence of productivity spillovers? This paper proposes an …-term wage contracts with their workers, productivity spillovers are fully internalized. If firms cannot commit to long-term wage …

States in terms of unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies … productivity grows less due to larger mismatch. The model can be used to address a number of normative issues. …

Economic development implies that the efficiency of firms in developing countries is approaching that of firms in … privatization, competition and foreign investment. We also test hypotheses positing that only firms near the efficiency frontier … find that privatization to domestic owners did not markedly improve the efficiency of firms; domestic firms are not …

The missing wage rigidity in general equilibrium models of efficiency wages is an artifact of the external wage … reference perspective conventionally adopted by the literature. Efficiency wage models based on an internal wage reference … perspective are capable of generating strong wage rigidity. We propose a structural model of efficiency wages that is broadly …

relations but contrast with traditional efficiency wage models which emphasize aggregate labour market variables as the main …

efficiency wages of the gift exchange variety. Compared to a standard sticky price model, our Fair Wage model provides an …