This paper aims to represent wage bargaining as an optimal control problem. Specifically, by assuming that employment follows a stock adjustment principle towards the level that maximises profits, i.e., towards labour demand, we build an intertemporal optimising model in which the real wage is...

In this paper, distinguishing between the choice of the worker and the choice of the firm, we provide a probabilistic evaluation of the transition from temporary to permanent employment in a regional context. Estimating a Multinomial Nested Logit Model, we found that the transition to a...