We present a model where divorcing spouses can choose to hire lawyers in their divorce process. Spouses encounter incentives as in the classical prisoners' dilemma: Despite the zero sum nature of the game and the lawyers' fees, each spouse has an incentive to hire a lawyer. We propose a simple...

The factors responsible for the lacklustre performance India's manufacturing are well identified in contemporary literature. The important ones are absence of world class infrastructure, complex system of internal taxation, an unpredictable taxation environment, and regulations relating to land...

In this paper, we explore the relationship between non-compliance with bargained minimum wages and employment. We illustrate the role of labour courts with respect to the Constitutional provision of "fair" wage and sketch a model in which firms choose their desired levels of employment and...

This paper documents the evolution of sector-level collective agreements in Italy and estimates the wage effects of the diffusion of non-representative agreements, often signed by unknown organisations i.e. pirate agreements. Using employer-employee data from Social Security Archives, we find...

This paper presents a model where wage differences between men and women arise from taste-based discrimination and monopsonistic mechanisms. We show how preferences against women affect heterogeneity in firms' pay policies in the context of an imperfect labour market, deriving a test for the...

This paper investigates the impact of a collective agreement stipulating a one shot increase in establishment-specific wage levels in a public-sector setting where wages otherwise are set according to individualized wage bargaining. The agreement stipulated that wages should increase in...

The paper examines the interdependencies of financialisation and working conditions by exploring the comparative findings of a micro-level survey on household income, household debt, and working conditions which was conducted in five European countries representing different institutional and...

The purpose of this paper is to investigate empirically the importance of labor market conditions and in particular of employment protection legislation as a determinant of bilateral Foreign Direct Investment flows to seven Central and Eastern European countries. Although our results indicate...

The creation of the Economic and Monetary Union (EMU) has not brought significant gains to the Portuguese economy in terms of real convergence with wealthier eurozone countries. We analyze the causes of the underperformance of the Portuguese economy in the last decade, discuss its growth...

We report the results from a representative survey of human resource managers in 885 Swedish firms. We estimate that during the severe recession of the 1990s, only 1.1 percent of workers took a cut in regular nominal pay. We trace the lack of wage moderation to a combination of exogenous...