, they pay lower wages today in exchange of higher future wages. Because firms with tighter financial constraints are also … smaller, the wages paid in small firms are lower than the in large firms, and therefore, the model generates a positive … relation between the size of the firm and the average wages paid to workers (wage-firm size relation). The model also captures …

occupational tenure are likely to increase wages by at least $19\%$. Moreover, we show that when occupational experience is taken …

combination of posted reservation wages, depending on parameters. We also show how wages, profits, and unemployment depend on …-specific variable, it is known that there are K reservation wages that could be posted, but generically never more than two actually are … posted in equilibrium. What is unknown is when we get two wages, and which wages are actually posted. For an example with K …

role to cross-country differences in social unemployment insurance institutions that Prescott argues can be safely ignored …

unemployment and vacancies of the magnitude observed in US data in response to shocks to average labor productivity of plausible … response of unemployment and vacancies to a shock to average labor productivity. In light of these properties, cast in terms of …

the wage and therefore smoothing unemployment fluctuations (Kimball 1994). In a matching model, too, wages fall in … labor market models have a hard time generating the degree of cyclical volatility in unemployment and vacancies that is … observed in the data. These papers have suggested that rigid wages may help to resolve this puzzle. However, little progress …

In this paper I argue that most comparisons of the unemployment dynamics in the United States and Europe since the war … experiences in the two continents. Growth has a big impact on unemployment in econometric estimation. I use established estimates …

in unemployment and vacancies but also wages, is the drop in consumption for the unemployed. In addition, explaining the … of the model over the business cycle. Wages are determined by long term contracts between workers and firms, with firms … producing wages that are too rigid relative to data. The key parameter governing how much volatility the model produces not only …