Jäger, Simon; Schoefer, Benjamin; Young, Samuel; … - 2018
Nonemployment is often posited as a worker's outside option in wage setting models such as bargaining and wage posting …-level bargaining. The insensitivity of wages to the nonemployment value we document presents a puzzle to widely used wage setting … protocols, and implies that nonemployment may not constitute workers' relevant threat point. Our evidence supports wage-setting …