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Unions And The Labour Market For Managers

Dinardo, John; Hallock, Kevin F; Pischke, Jörn-Steffen - C.E.P.R. Discussion Papers - 2000

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 …

Persistent link: https://www.econbiz.de/10005666977

Labour Market Institutions and the Cohesion of the Middle Class

Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 1995

We develop a simple model to study how relative wage rigidity affects equilibrium taxation. It is argued that relative wage rigidity, by compressing incomes within the middle class, leads to a lower degree of redistributive conflict within the politically important core of society, even though...

Persistent link: https://www.econbiz.de/10005123707

Incentives in Competitive Search Equilibrium and Wage Rigidity

Moen, Espen R; Rosén, Åsa - C.E.P.R. Discussion Papers - 2006

This paper examines competitive search equilibrium when workers' effort choice and 'type' are private information. We derive a modified Hosios Rule determining the allocation of resources, and analyze how private information influences the responsiveness of the unemployment rate to changes in...

Persistent link: https://www.econbiz.de/10005123973

Unemployment and Increasing Returns to Human Capital

Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 1994

This paper studies a model of human capital accumulation with real wage rigidity. It is shown that the arbitrage condition between hiring a skilled versus an unskilled worker may be stated as a positive relationship between their relative unemployment rates. It may be the case that this locus is...

Persistent link: https://www.econbiz.de/10005124159

Efficiency Wages Revisited: The Internal Reference Perspective

Danthine, Jean-Pierre; Kurmann, Andre - C.E.P.R. Discussion Papers - 2004

The missing wage rigidity in general equilibrium models of efficiency wages is an artifact of the external wage reference perspective conventionally adopted by the literature. Efficiency wage models based on an internal wage reference perspective are capable of generating strong wage rigidity....

Persistent link: https://www.econbiz.de/10005124415

Firing Tax and Severance Payment in Search Economies: A Comparison

Garibaldi, Pietro; Violante, Giovanni L - C.E.P.R. Discussion Papers - 2002

Employment Protection rules have two separate dimensions: a transfer from the firm to the worker to be laid off and a tax paid outside the firm-worker pair. It is well established that with full wage flexibility statutory severance payments (pure transfers) between employers and dismissed...

Persistent link: https://www.econbiz.de/10005136767

Wage Rigidity and Monetary Union

Dellas, Harris; Tavlas, George - C.E.P.R. Discussion Papers - 2003

We compare monetary union to flexible exchange rates in an asymmetric, three-country model with active monetary policy. Unlike Friedman's (1953) case for flexible rates, we find that countries with high degree of nominal wage rigidity are better off in a monetary union. Their benefits increase...

Persistent link: https://www.econbiz.de/10005504261

Post-Reform East and West: Capital Accumulation and the Labor Mobility Constraint

Wyplosz, Charles - C.E.P.R. Discussion Papers - 1991

Assuming that economic reforms are successful in Eastern Europe, what will be the effects on Western Europe? The focus is on the wage pressure that the threat of migration from East to West is likely to impose. The paper adopts a Ramsey model of intertemporal choice, for both individuals and...

Persistent link: https://www.econbiz.de/10005504320

The Macroeconomic Consequences of Reciprocity in Labour Relations

Danthine, Jean-Pierre; Kurmann, Andre - C.E.P.R. Discussion Papers - 2005

We develop and analyse a structural model of efficiency wages founded on reciprocity. Workers are assumed to face an explicit trade-off between the disutility of providing effort and the psychological benefit of reciprocating the gift of a wage offer above some reference level. The model...

Persistent link: https://www.econbiz.de/10005504485

Wage Rigidity, Implicit Contracts, Unemployment and Economic Efficiency

Newbery, David M G; Stiglitz, Joseph E - C.E.P.R. Discussion Papers - 1985

Implicit contract theory has been successful in explaining wage rigidity but not unemployment. We argue that the theory has paid insufficient attention to (i) the general equilibrium aspects and (ii) constraints limiting the set of feasible contracts. Implicit, as opposed to explicit contracts,...

Persistent link: https://www.econbiz.de/10005504702