This paper combines matching frictions with e¢ ciency wages to deter shirking in a model that is estimated for the USA … both countries, both matching frictions and efficiency wages play a significant role in enabling the model to fit the data …

previous jobs, and thus much more than they get in unemployment benefits. However, our results also show that some groups, such … as women, tend to systematically demand lower wages. Also, we find that workers with high wage demands are contacted by … demands may contribute to high unemployment. …

Are there any differences in how men and women fare from unemployment in terms of the wages they receive on a new job … experience unemployment will suffer a reduction of subsequent wages while no such effect could be found for women. These findings … unemployment duration was rather short, which may have prevented general capital from depreciating. However, the presence of large …

undermines the incentive to work hard and forces the public sector to pay higher wages. Thus, the public sector wage premium can …

model framework to resolve that puzzle. Our efficiency wage model emphasizes the importance of the local unemployment rate … that nonzero steady involuntary unemployment at equilibrium may coexist with an efficiency wage that stays below the market …

We formulate an efficiency wage model with on-the-job search where wages depend on turnover and employers may use … employment status affects both the level and the persistence of unemployment and numerically that these effects are substantial … to explain the high and persistent European unemployment. …

wage setting to mirror productivity differences. However, when setting its wages the firm has to consider other factors as … well, e.g. turnover, that may make it optimal not to set wages that fully reflect productivity differences. Instead, it may … is free to set different wages for workers with different expected productivities. It is also shown that if all firms use …