This paper introduces staggered right-to-manage wage bargaining into a NewKeynesian business cycle model. Our key result is that the model is able to generatepersistent responses in output, inflation, and total labor input to both neutraltechnology and monetary policy shocks. Furthermore, we...

The career prospects of newly recruited employees differ substantially within an organization.The stars experience a considerable growth in earnings; others can hardly maintain theirentry salaries. This article sheds light on the mechanisms generating the observedheterogeneity in earnings...