This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are … quit decisions. This approach obviates the need for a matching function. On this theoretical basis, we argue that the … matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important …

negotiations. Wage and employment decisions are assumed to be made before business conditions are known; thus these decisions … effectiveness of various government policies on production, employment, and pricing. Hysteresis is shown to be a special case in a …

We provide evidence on the match between firms, managers and incentives using a new survey designed for this purpose … implicit incentives they face and on the firms they work for. We model a market for managerial talent where both firms and … choice of managerial compensation schemes and the manager-firm matching are all endogenous. The model yields predictions on …

A theoretical model of collective wage bargaining is developed in which unions set wages and employers decide … employment. A novel feature of the model is that the conventional expected utility calculus is replaced by one in which regret … to a series of wage bargaining rounds in which collectively determined wage rates rise and employment falls. This dynamic …

wage affects wages even though, after imposition, the lowest wage in the market exceeds the minimum wage. The model has …

This paper derives and then estimates a model of employment where unions and firms bargain over wages and possibly … employment, and efficiency wage considerations may be important. It illustrates the difficulties involved in interpreting many … existing attempts to discriminate between alternative models. The results (based on over 200 UK firms) suggest that employment …

A significant gap exists in the UK between the employment rate for Ethnic Minorities and that for Whites. From a policy … discriminatory behaviour in the labour market. In this paper, we use administrative data to estimate ethnic differences in employment … and the data we have, propensity score matching methods are the most robust approach to estimating ethnic parity. We …

This paper studies the effect of changes in foreign competition on the incentives faced by U.S. managers in the form of … while lower-ranking executives see their wages fall. Third, higher competition is associated with a higher probability of …

A key input to inventive activity is human capital. Hence it is important to understand the monetary incentives of …