Although the case for treating human capital as a productive factor is clear, its introduction presents complications since ownership of (or property rights in) human capital cannot be separated from the ownership of (or property rights in) labor itself. Consider a two-region economy. When labor...

This paper proposes a simple theoretical model of a small open economy comprising of four sectors including formal and informal ones. One sector produces skilled intermediate input for the importable production. Though other two sectors use labour and capital (land), labour is segregated as...

Observationally equivalent workers are paid higher wages in larger firms. This fact is often named as the "firm-size wage gap" and is regarded as a key empirical puzzle. Using micro-level data from Turkey, we document a new stylized fact: the firm-size wage gap is more pronounced for informal...

This paper models frictions in buyer-seller markets using networks, where buyers are linked with a subset of sellers and sellers are linked with a subset of buyers. Sparser networks are associated with higher search frictions. We use the model to characterize pairwise stable allocations and...

In the paper, we simulate a heterogeneous-agent version of the wage-posting model as derived by Montgomery (1991) with homogeneous workers and differently-productive employers. Wage policy of particular employer is positively correlated with employer’s productivity level and the wage policy of...

We study the bargaining relationship between a firm and its incumbent worker who possesses firm-specific human capital. We show that, in the contract renewal stage, the worker's ability to use his firm-specific skills strategically increases his bargaining power vis-a-vis the firm. The firm can...

Abstract German (English abstract is added below) Arbeitslosigkeit gilt als eines der schwerwiegendsten gesellschaftlichen Probleme unserer Zeit. Doch welche Gründe liegen, trotz der über die Jahre eingeleiteten Maßnahmen zur Bekämpfung der Arbeitslosigkeit, für die anhaltende...

We study the bargaining relationship between a firm and its incumbent worker who possesses firm-specific human capital. We show that the worker's ability to disclose his skills strategically increases his bargaining power. The game may have inefficient equilibria where delays occur in real time....

We consider a collective bargaining model for the determination of labor hours and wages in the presence of a government that can tax corporate income. The original form of this model was developed by Del Rey et al. (2022) in the absence of taxes. Using our modified model with taxes, we...