We study the effects of mobility costs in a model of wage bargaining between workers and firms, where there is instantaneous matching, free firm entry, heterogeneous labour, and workers' individual productivities are discovered by firms only after being hired. We derive the employment level and...

In recent years, the OECD has measured the structural rate of unemployment by an indicator called the Non-Accelerating Wage Rate of Unemployment. The NAWRU-indicator is an important element in the policy analysis of the OECD. The rise in the estimated NAWRUs is also taken as evidence that Nordic...

Using a set of panel data for manufacturing plants we study how payrll taxes and investment subsidies affect wages and demand for labor and capital. We exploit changes in the regional subsidy schemes for labor anf capital in Norway. Our empirical analysis finds that a large part of changes in...

Do wage differences between workers with high and low levels of education, between males and females and between workers with different levels of experience reflect differences in productivity? We address this set of questions on the basis of a data set with variables for individual workers...