, are the first to leave the firm (Last In, First Out; LIFO). Second, workers’ wages rise with seniority (= a worker … to seniority in wages. Efficiency in hiring requires the workers’ bargaining power to be in line with their share in the …

This paper provides a new way of analyzing tenure profiles in wages, by modelling simultaneously the evolution of wages … and the distribution of tenures. Starting point is the observation that within-job log wages for an individual can be … in the current job follow a random walk. This setting allows the application of real option theory. We derive the …

While the employment effects of minimum wages are usually reported to be small (suggesting low substitutability between …