that firm agreements exert a stronger impact on wages than on productivity, so that profitability is hampered. However … wages beyond productivity when the rents to be shared between workers and firms are relatively big. Overall, this suggests … that firm-level agreements benefit to both employers and employees - through higher productivity and wages - without being …

How costly is inflation to workers? Answers to this question have focused on the path of real wages during inflationary … periods. We argue that workers must take costly actions ("conflict") to have nominal wages catch up with inflation, meaning … there are welfare costs even if real wages do not fall as inflation rises. We study a menu-cost style model, where workers …