This paper uses the British Household Panel Survey to investigate when seniority is rewarded by automatic incremental scales. Scales are seen as an alternative to individual merit pay. They are likely to be used when individual productivity is hard to measure, when firms provide all workers with...

In this paper, we develop a dynamic model of firm-level bargaining, along the lines of Manning (1993). In this context, we provide a firm level wage equation that explicitly accounts for firm heterogeneity. This wage equation explains inter-firm wage differentials by differences in labour...

This paper uses a new data source to investigate whether wages rise more with seniority in unionized or non-unionized workplaces. The data distinguish workers who are covered by incremental wage scales with automatic progression by seniority. For union workers with seniority scales, the union...

According to surprising raw data from the British Household Panel Survey, full-time women are more likely than men to be promoted. Controlling for observed and unobserved individual heterogeneity, we find that women are promoted at roughly the same rate as men, but receive smaller wage increases...

This paper analyzes the strikingly different response of unemployment to the Great Recession in France and Spain. Their labor market institutions are similar and their unemployment rates just before the crisis were both around 8%. Yet, in France, unemployment rate has increased by 2 percentage...

The systematic use of experience rating is an original feature of the US unemployment benefit system. In most states, unemployment benefits are financed by taxing firms in proportion to their separations. Experience rating is a way to require employers to contribute to the payment of...

The Nash wage bargaining model is ubiquitous in modern labour economics. Yet most applications of this model ignore inter-employer competition for labour services and attribute all of the workers’ rent to their bargaining power. In this Paper, we write and estimate an equilibrium model with...