In this paper, we develop a dynamic model of firm-level bargaining, along the lines of Manning (1993). In this context, we provide a firm level wage equation that explicitly accounts for firm heterogeneity. This wage equation explains inter-firm wage differentials by differences in labour...

This paper analyzes optimum income taxation in a model with endogenous job destruction that gives rise to unemployment. It is shown that optimal tax schemes comprise both payroll and layoff taxes when the state provides public unemployment insurance and aims at redistributing income. The optimal...

We analyze how wage setting institutions and job-security provisions interact on unemployment. The assumption that wages are renegotiated by mutual agreement only is introduced in a matching model with endogenous job destruction - la Mortensen and Pissarides (1994) in order to get wage profiles...

It is frequently argued that pure government-mandated severance transfers by the employer to the worker have neither employment nor welfare effect because they can be offset by private transfers from the worker to the employer. In this paper, using a dynamic search and matching model a la...

As a preliminary step, we first provide some new empirical evidence that labor market conditions affect retirement decisions at the individual level: unemployed people are more likely to retire. Our main objective in this paper is then to propose an equilibrium unemployment approach to...

This article explores how an employee's choice to work from home (WFH) influences his or her spouse's outcomes. Drawing on the specific features of the French institutions, we show that a spouse's switch to WFH leads to a sharp increase in the probability that his or her partner will also switch...

This paper explores the extent to which workers are willing to trade hours worked for leisure time shared with their spouse. This parameter is essential to properly assess contemporary trends in the regulation of work and leisure time. We use the fact that the number and timing of paid vacation...

Children's outcomes are strongly correlated with those of their neighbours. The extent to which this is causal is the subject of an extensive literature. An identification problem exists because people with similar characteristics are observed to live in close proximity. Another major difficulty...

Driven by new information technologies, working from home has experienced unprecedented growth since the COVID pandemic. We contribute to the debate on the consequences of this development by drawing on a French reform conducted in 2017, with the aim of facilitating telework agreements between...

We investigate spillovers in spousal labour supply exploiting independent variation in hours worked generated by the introduction of the shorter workweek in France in the late 1990s. We find that female and male employees treated by the shorter legal workweek reduce their weekly labour supply by...