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Using a set of panel data for manufacturing plants we study how payrll taxes and investment subsidies affect wages and … empirical analysis finds that a large part of changes in payroll taxes is shifted over to wages. This result suggests that …
Persistent link: https://www.econbiz.de/10005652106
We construct a model integrating the efficiency wage model of Shapiro-Stiglitz (1984) with the matching-bargaining models of Diamond, Mortensen and Pissarides (DMP). Firms and workers form pairwise matches, workers may shirk on the job, and the wage is set in an asymmetric Nash bargain over the...
Persistent link: https://www.econbiz.de/10005652119
We study the effects of mobility costs in a model of wage bargaining between workers and firms, where there is instantaneous matching, free firm entry, heterogeneous labour, and workers' individual productivities are discovered by firms only after being hired. We derive the employment level and...
Persistent link: https://www.econbiz.de/10005652172
We investigate the effects of wage compression through centralized collective bargaining when growth depends on the continual reallocation of labor from older, less productive plants to new, more productive plants.
Persistent link: https://www.econbiz.de/10005652220
We introduce strategic wage bargaining in a search equilibrium model. We find that wages respond more an employment and … output less to aggreagte shoks than when wages are determined by conventional Nash bargaining. Expectations about the stocks … increase the volatility of wages even more. …
Persistent link: https://www.econbiz.de/10005652404
Increased tax progressivity raises the elasticity of labour demand with respect to consumer wages which implies that … labour unions subtitute wages with employment. This paper investigates the effects to tax prograssivity on wages using …
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