We develop a product market theory that explains why firms invest in general training of their workers. We consider a …

We examine the relationship between the employment and compensation of managers and CEOs and the presence of a … monitoring, which requires more managers. The model also assumes rent sharing between workers, managers and the owners of the … firm. Unions, by redistributing rents towards the workers, lead to lower employment and lower pay for managers. Using a …

labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching … labor force and rises the share of attached workers. Finally, our theory suggests that contrary to two-state models …