We argue that in labor markets with central wage bargaining wage flexibility varies systematically across the wage distribution: local wage flexibility is more relevant for the upper part of the wage distribution, and flexibility of wages negotiated under central wage bargaining affects the...

We characterize optimal monetary policy in a New Keynesian search-and-matching model where multiple-worker firms satisfy demand in the short run by adjusting hours per worker. Imperfect product market competition and search frictions reduce steady state hours per worker below the efficient...

We study the effect of childcare availability on child penalties. Using Swiss administrative data, we exploit the staggered opening od childcare facilities across municipalities in the canton of Bern. We find that the presence of childcare facilities in the year of birth of the first child...