This paper investigates an economy in which there are short-term wage contracts that are re-negotiated under certain conditions. This paper determines the optimal frequency of wage re-negotiation and shows that it depends positively on measures of aggregate variability and Phillips curve slope....

This paper analyzes economic behavior and the effects of training and income support policies in the low wage labor market for women. The opportunity set takes account of nonlinearities and discontinuities associated with career interruption, part-time work, and government programs. There are...

This paper examines the consumption response to monthly paycheck receipt. Since the amount and arrival date of paychecks are known in advance, the receipt of a paycheck does not coincide with the receipt of new information. Under the basic rational expectations Life-Cycle/Permanent Income...

This paper represents the first empirical application of a model of trade union behavior that has been discussed in the literature for over thirty years. The wages and employment o typographers are examined to see whether they can be usefully characterized as the outcome of a process by which...

Leading models of on-the-job search suggest that competition among firms for employed workers - reflected in higher job-to-job transition rates - is an important driver of real wages. Intuitively, workers are better placed to move or bargain for increases in wages, hours or promotions when they...

This paper explores the effects of labour market conditions at graduation on an individual's work‑life over the following decade. Australians graduating into a state and year with a 5 percentage point higher youth unemployment rate can expect to earn roughly 8 per cent less in their first year...

Little is known about how workers update expectations about job search and earnings when exposed to labor market news. To identify the impact of news on expectations, I exploit Foxconn's unexpected announcement to build a manufacturing plant in Racine County. Exposure to positive news leads to...

We address the presence, magnitude, and composition of wage gains related to former co-workers and discuss the mechanisms that could explain their existence. Using Hungarian linked employer-employee administrative data and proxying actual co-workership with overlapping work histories, we show...

Overeducation poses a significant challenge in the job market, impacting both job mobility and wage. This study aimed to examine the influence of overeducation experience on two key factors, including 1) the probability of experiencing overeducation again in the current job and 2) the level of...