Dudek, Maciej K.; Handlowa, ówna - Society for Computational Economics - SCE - 2006
Above market clearing wages are shown to prevail as an outcome of a game in which employers possess and employees lack … clearing wages as the higher wage bill need not outweigh the increase in profits due to entry restriction. Resulting … unemployment is shown to be socially costly. The paper notes that a tax on revenue of the incumbent firms can be welfare improving …
