Building upon a continuous-time model of search with Nash bargaining in a stationary environment, we analyze the effect of changes in minimum wages on labor market outcomes and welfare. While minimum wage increases invariably lead to employment losses in our model, they may be welfare-improving...

I develop a model in which exact compliance with child support orders is synonymous with cooperative outcomes with respect to child good expenditures. The child support order imposed by institutional agents serves as focal point for the problem of dividing the gains from cooperation. Compliance...