In this paper, we combine a matching model derived from Pissarides (2000) in the case of large .rms with monopolistic competition on the product market and the model of intra.rm bargaining à la Stole and Zwiebel (1996). Moreover, we allow for increasing returns to scale in the aggregate...

We introduce the heterogeneity of labor in a simple imperfectly com- petitive aggregate labor market model "à la Manning (1990)" in order to analyze the effects of an exogenous rise of the legal minimum wage on the unemployment equilibrium, the wage dispersion and the general price level. We...