This paper explores the possibility of privately inefficient job separations due to bargaining friction and its … implications for the unemployment dynamics. I propose a simple specification of bargaining friction by including bargaining wedges … in the standard Nash bargaining model. Such bargaining wedge arises when, for example, wages are determined by …

more employment with individual wage bargaining than with collective wage bargaining, using a wage equation generated by … the standard total surplus sharing rule. Using a Cobb-Douglas production function, they find that if the bargaining power … of the individual is high compared to the bargaining power of the union, there is more unemployment with individual wage …

more employment with individual wage bargaining than with collective wage bargaining, using a wage equation generated by … bargaining power of the individual is high compared to the bargaining power of the union, there is more unemployment with … individual wage setting and vice versa. When the individual worker and the union have the same bargaining power, if the cost of …

retirement age into Cahuc, Postel-Vinay, and Robin s (2006) strategic wage bargaining model with counteroffers and heterogeneous … retirement, match heterogeneity, and the worker's bargaining power. Because the working life is finite, the optimal search effort … of the current match. The bargaining power parameter influences the worker's reservation wage. The model can reproduce …