in other firms (congestion). According to efficiency wage and bargaining theory, wages are set above the market clearing …How well do alternative labor market theories explain variations in net job creation? According to search-matching … theory, job creation in a firm should depend on the availability of workers (unemployment) and on the number of job openings …

Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional … employees (entrants) receive their reservation wages. The reason given is that an increase in insider wages gives rise to a … counterveiling fall in reservation wages, leaving the present value of wage costs unchanged. Our analysis contradicts this …

workers lose their jobs. By introducing minimum wages, the model explains empirical findings on the effects of minimum wage … laws. In addition, the model shows that minimum wages can account for about half of the differences in youth employment …

hours to wages accounting for Labour demand in an on-the-job equilibrium search model framework. A firm posts part and full … function of wages and the number of weekly worked hours is the criterion workers consider when accepting or rejecting job … the model, we show that the relationship between hours and wages depends dramatically on the firm?s demand shape parameter …