Equilibrium search models require unobserved heterogeneity in productivityto fit observed wage distribution data, but provide no guidance about the location parameter of the heterogeneity. In this paper we show that the location of the productivity heterogeneity implies a mode in a kernel...

In this paper, we analyse the wage setting of a democratic labour union. The union members differ with respect to their employment probabilities. The union wage only changes if the parameters of the median member change. An exogenous shock to revenue may increase the wage, even if labour demand...

In this paper, we analyse the organization of the labour market in a general equilibrium model of a closed economy with two industries and two types of labour input. Workers are organized in industry- and skill-specific unions. The wage is set in cooperation either between identical labour types...

This paper describes how personnel policies vary between establishments with respect to pay, tenure and worker flows. In particular we have analyzed to what extent higher pay is related to higher or lower turnover among the work force and more or less seniority. Can higher pay be considered a...

In this paper we theoretically and empirically analyze equilibrium search models of the labor market. The Burdett-Mortensen equilibrium search model is generalized by allowing for continuous distributions of firm productivity types within a given labor market. We characterize equilibrium and...

In this paper we extend a job search-matching model with firm-specific investments in training developed by Mortensen (1998) to allow for different offer arrival rates in employment and unemployment. The model by Mortensen changes the original wage posting model (Burdett and Mortensen, 1998) in...