We offer a unified framework to analyze the determination of employment, employee effort, wages, profit-sharing and capital structure when firms face stochastic revenue shocks. We apply a generalized Nash bargaining solution, which extends the wage bargaining literature by incorporating...

We study a full employment monetary economy, where labor is allocated through contracts. We generalize and extend the sticky wage result of Rogerson an Wright. Our model is different from theirs in two respects. Labor is devisible, and hence unemployment is not possible in our model. And in...

The paper introduces a model of enterprise formationin a unionized economy with labor protection and wage bargaining. Enterprise formation is subject to future market risk and is shaped by labor market institutions in the post-entry stage. The predictions of the model are tested in cross-section...

This study describes the changes in the wage structure in Filand between 1977 and 1995, and provides a simple explanation based on demand and supply of skills.

According to conventional wisdom the total taxe wedge, which is the sum of wage and payroll taxes, is sufficient to specify the distortion of wage formation caused by labour taxation. Using Nash bargaining approach to wage negotiations this paper shows that conventional wisdom is valid for equal...

We analyze the impact of entrepreneurship as an outside option on compensation contracts between a principal and an agent with bargaining power. In the first stage the parties bargain over the base wage and the profit share. In the second stage the principal determines the capital investment and...

This dissertation consists of three theoretical essays. The first one, Chapter 2, uses a simple implicit contract model to explain why risk-neutral firms buy insurance policies. The them of the second essay, Chapter 3, is wage distribution and its links to different forms of childcare. The third...