This paper examines the effects of various labor market institutions on the welfare of workers and employers. We consider self-enforcing contracts between risk-averse workers and risk-neutral employers in a labor market with search frictions. Employers promise to smooth out shocks to wages while...

Most of the newly created jobs in Croatia are temporary jobs. This contributes to labor market duality: the growing divide between employees with secure, permanent jobs (referred to as insiders) and those with precarious, temporary jobs (referred to as outsiders). Dual labor market is...

Most of the newly created jobs in Croatia are temporary jobs. This contributes to labor market duality: the growing divide between employees with secure, permanent jobs (referred to as insiders) and those with precarious, temporary jobs (referred to as outsiders). Dual labor market is...