This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine the consequences of introducing an unemployment benefit,...

Many large listed firms offer workers the opportunity to buy shares in the firm at discounted rates through employee stock purchase plans (ESPP). The discounted rate creates a gift exchange, where the firm hopes that workers who accept the gift reciprocate with greater loyalty and effort. But...

Non-union direct voice has replaced union representative voice as the primary avenue for employee voice in the British private sector. This paper provides a framework for examining the relationship between employee voice and workplace outcomes that explains this development. As exit-voice theory...

Using data from the Workplace Employment Relations Survey 1998, this paper shows that unionisation increased the probability of within-workplace job cuts and the incidence of job security guarantees. As theory predicts, both are more prevalent among market-sector workplaces with higher union...

A national survey makes it possible to examine employees' awareness of net overall reductions in the size of the workforce along with their awareness of employer policies that promise 'no compulsory redundancies'. Differences are investigated between union and nonunion workplaces, and between...

We show that worker wellbeing is not only related to the amount of compensation workers receive but also how they receive it. While previous theoretical and empirical work has often been pre-occupied with individual performance-related pay, we here demonstrate a robust positive link between the...

We investigate the effect of employer job security guarantees on employee perceptions of jobsecurity. Using linked employer-employee data from the 1998 British Workplace EmployeeRelations Survey, we find job security guarantees reduce employee perceptions of jobinsecurity. This finding is robust...

We develop and estimate a non-stationary job search model to evaluate as scheme that monitors job search effort and sanctions insured unemployed whose effort is deemed insufficient. The model reveals that such schemes provide incentives to the unemployed to front-load search effort prior to...

This papers revisits the normative properties of search-matching economies when workers have concave utility functions. A general equilibrium framework is developed where agents are homogeneous and wages are bargained over. Assuming lump-sum taxation of profits, the optimal allocation of...

This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor demand and wages. Compared to the laissez-faire,...