The central objective of this paper is to assess the empirical relevance of labour adjustment costs arising from institutional rigidities and to compare their importance across countries. It thus develops a simple dynamic bargaining model of the union monopoly type that, for the first time,...

We analyse educational choices and earnings of individuals at two different levels in the Portuguese educational system. At each exit we consider two decisions: the decision to continue studying and the employment decision. We find empirical support for the existence of selectivity bias as the...