This paper considers a two-period optimal contracting model in which firms make new hires in the second period subject to the constraint that they cannot pay discriminate either against or in favour of the new hires. Under an assumption on the information available to workers, it is shown that...

In this paper we conduct a theoretical analysis of the implications of a union which can exploit the existence of firm labour adjustment costs. We consider a model involving a large number of identical firms facing a single, economy-wide union. We solve (i) for the Markov perfect equilibria with...

This paper presents a new model of firms' decisions on training in a context of potential worker mobility. Such worker mobility can be influenced by employers coordination, namely through the operation of no-poach agreements and employers' associations (EAs). We then present supporting evidence...

We adapt the models of Menzio and Moen (2010) and Snell and Thomas (2010) to consider a labour market in which firms can commit to wage contracts but cannot commit not to replace incumbent workers. Workers are risk averse, so that there exists an incentive for firms to smooth wages. Real wages...

In this paper we conduct a theoretical analysis of the implications of a union which can exploit the existence of firm labour adjustment costs. We consider a model involving a large number of identical firms facing a single, economy-wide union. We solve (i) for the Markov perfect equilibria with...

In this paper we conduct a theoretical analysis of the implications of a union which can exploit the existence of firm labour adjustment costs. We consider a model involving a large number of identical firms facing a single, economy-wide union. We solve (i) for the Markov perfect equilibria with...

This paper studies firm-provided training in a context of potential worker mobility. We argue that such worker mobility may be reduced by employers’ associations (EAs) through no-poach agreements. First, we sketch a simple model to illustrate the impact of employer coordination on training. We...

This paper presents a new model of firms' decisions on training in a context of potential worker mobility. Such worker mobility can be influenced by employers coordination, namely through the operation of no-poach agreements and employers' associations (EAs). We then present supporting evidence...