We consider a matching model of employment with wages that are flexible for new hires, but sticky within matches. We depart from standard treatments of sticky wages by allowing effort to respond to the wage being too high or low. Shimer (2004) and others have illustrated that employment in the...

The own-wage elasticity of labor demand measures the effect of higher wages on firms’ demand for labor and, thus, determines the impact of supply shocks, minimum wages, and collective wage agreements on the labor market. I carry out a comprehensive meta-analysis to shed light on the nature of...

"This authoritative Encyclopedia provides a comprehensive overview of central concepts in labour studies, and how they can be used to analyse labour markets. Examining regional and sectoral labour markets alongside the internal labour markets of firms, it clearly lays out the current state of...