In this article we document the patterns of employment adjustment at the micro level. We find clear evidence of lumpy adjustment consistent with the presence of nonconvexities in the adjustment technology—inaction is pervasive, action spells are short-lived, and extreme adjustment episodes are...

Using special Current Population Survey data on displaced workers, this article investigates the wage consequences of job displacement in a framework that emphasizes the effects of past duration(s) and unemployment duration(s) on postdisplacement wages. The authors' model also attempts to take...

How does a typically European bargaining system, with collective bargaining and national minimum wage, coexist with low unemployment and high wage flexibility? A unique data set on workers, firms, and collective bargaining contracts in Portugal is used to analyze the determinants of both the...