In a dynamic stochastic monopoly union model we show that firing costs have a small and ambiguous impact on the level of employment if the union precommits to future wages. Further, in comparison with the commitment equilibrium and for very general union preferences, the no-commitment...

We build a model where firing transfers and firing taxes interact with the degree of centralisation in wage bargaining. The comparative statics of the model imply that firing taxes are less harmful for aggregate employment in economies with centralised bargaining as opposed to economies with...

We build an expanding variety endogenous growth model with search frictions in financial markets. We show that the rate of growth declines with the extent of frictions. We also show that, as frictions gain momentum, the rate of growth becomes more sensitive to exogenous variations in innovation...

This paper studies how firms adapt hours and employment to changes in business conditions. For this purpose we build a formal model which accounts for dynamic uncertainty and costly adjustments on both margins of the labour input. Using stochastic methods we find that the optimal employment...

In a setting that focuses on efficient dynamic hours-workers substitution we show that contingent worksharing contributes to worker retention during bad business spells and to sustained hiring during good spells. As a consequence, average employment increases on both accounts. We also show that...

We present an economy composed of many sectors. In each sector, a simple dynamic stochastic game is played between a wage-setting union and many competitive firms that choose employment. Firms are subject to linear workforce adjustment costs whilst the union, along with employment and wages, is...

This paper investigates the reaction of active union members towards workplace organizational changes. We use micro-data from a large firm and estimate an empirical model which deals explicitly with the potential endogeneity of the union activist status. The data indicate that workers who become...

This paper studies how firms adapt hours and employment to changes in business conditions. For this purpose we build a formal model which accounts for dynamic uncertainty and costly adjustments on both margins of the labour input. Using stochastic methods we find that the optimal employment...

In a setting that focuses on efficient dynamic hours-workers substitution we show that contingent worksharing contributes to workers retention during bad business spells and to sustained hiring during good spells. As a consequence, average employment increases on both accounts. We also show that...