, are the first to leave the firm (Last In, First Out; LIFO). Second, workers' wages rise with seniority (= a worker … to seniority in wages. Efficiency in hiring requires the workers' bargaining power to be in line with their share in the …

, are the first to leave the firm (Last In, First Out; LIFO). Second, workers' wages rise with seniority (= a worker … to seniority in wages. Efficiency in hiring requires the workers' bargaining power to be in line with their share in the …

on wages. Often, the effect is predicted to be negative. Despite the popularity of these theories, this has never been … tested. We perform tests with matched worker-firm data. The worker data are informative on individual wages and labour market … difference between labor productivity and wages in a market depends on the degree of frictions and other determinants. We correct …