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We offer a unified framework to analyse the determination of employment, employee effort, wages, profit-sharing and …-moderating effect for firms facing unions in bilateral wage negotiations. Finally some implications for equilibrium unemployment are …
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I discuss some key issues raised by behavioral economics for better understanding the working of the labor market. Amongst the key points in this paper are: (i) a revised modeling of the labor supply curve, with a specific focus on the target income approach (ii) elaborating on the importance of...
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model framework to resolve that puzzle. Our efficiency wage model emphasizes the importance of the local unemployment rate … that nonzero steady involuntary unemployment at equilibrium may coexist with an efficiency wage that stays below the market …
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