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...

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 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...

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...

This paper analyzes the economic impact of unions on productivity in the manufacturing sector across six Latin American countries: Argentina, Bolivia, Chile, Mexico, Uruguay, and Paraguay. Using an augmented Cobb-Douglas production function, the paper finds that unions have positive, but mostly...

Labour market developments have Germany undergone two shocks: German reunification in the early 1990s, and the Hartz reforms in the early 2000s. They separated the German labour market into the traditional rather corporatist labour market segment, characterised by a high degree of coordination,...

Despite witnessing a decade of rapid economic growth, an acceleration of growth in the organised manufacturing sector has eluded India. Using data from the An nual Survey of Industries, we examine the factors holding back the growth of output and employment in this sector. We find that there are...