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This paper explores the possibility of privately inefficient job separations due to bargaining friction and its … implications for the unemployment dynamics. I propose a simple specification of bargaining friction by including bargaining wedges … in the standard Nash bargaining model. Such bargaining wedge arises when, for example, wages are determined by …
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-contractible but can be included in extended collective bargaining when workers participate in management, but employment is still … traditional bargaining over wages to extended (but still second-best) bargaining can generate a Pareto welfare improvement. -- job …-satisfaction; bargaining ; unemployment …
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When vacancies are filled, the ads that were posted are often not withdrawn, creating "phantom" vacancies. The existence of phantoms implies that older job listings are less likely to represent true vacancies than are younger ones. We assume that job seekers direct their search based on the...
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In this paper we investigate the quantitative importance of search and matching fric- tions in Bulgarian labor markets …
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