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 …

possibility of differential productivity across occupations. The model combines moral hazard and matching of physicians and … occupations with pre-matching investments. In equilibrium assortative matching takes place; more able physicians join occupations … less exposed to moral hazard risk, face more powerful performance incentives, and are more productive. Under-consumption of …

impact of the regime of collective bargaining on wages in the manufacturing sector of three countries that are characterized … by a multi-level system of bargaining: Belgium, Denmark and Spain. Our findings show that, compared to multiemployer … bargaining, single-employer bargaining has a positive effect both on wage levels and on wage dispersion in Belgium and in Denmark …

very rich linked employer-employee dataset which provides detailed information on wages, productivity, and worker's and …

wages with respect to unemployment postulated by Blanchflower and Oswald. In this regime, we also find that works councils … dampen the adjustment of wages to the regional unemployment situation. In the other regimes of plants that either do not make …

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

part of the industrial policy. We use a matching technique combined with a difference-in-differences estimator in the … important impetus to plant survival and employment growth. We also discover some differences in terms of the effectiveness of … grants between foreign multinationals and domestic plants. Specifically, while grants have helped to stimulate employment …

Using a matched firm-worker dataset, we show both theoretically and empirically that positive assortative matching …

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