Assuming random matching productivity, we present a search equilibrium model where each match ends in a vacancy, in a temporary job or in a permanent job. Centralized bargaining sets the wage rate of permanent workers whereas rms decide unilaterally the wage rate of temporary workers. In this...

The aim of this paper is to evaluate the consequences of the financial crisis on the Italian labour market by analysing the determinants of individuals’ transitions between occupational states. For this purpose, we use micro-data micro-data from the Istat Labour Force Survey, a repeated...

We introduce an efficiency wage mechanism into an innovation-driven growth model. Due to asymmetric information problems the labour market is segmented and homogeneous workers may be employed either in the non-competitive intermediate sector or in the competitive research sector. We analyse the...