A holdup problem on workers’ skill investment arises when employers can adopt discriminatory hiring norm to extract higher than socially optimal profit. In such an economy, productivity (skills) and non-productivity oriented characteristics (discrimination) both matter when determining which...

In this paper, we integrate the retirement deadline taking into account both labor demand and labor supply specificities. This approach reveals that firms' employment decisions play an active role in the early retirement decision. We show that, in a walrasian economy, social security reforms...

This paper analyzes how the frictions in the labor market simultaneously affect the economic growth and the long run unemployment. To this goal, we develop a Schumpeterian model of endogenous growth: agents have the choice of being employed or being doing R&D activities. Unemployment is caused...