, therefore,says that a firm sets higher wages, the higher unemployment. As themodel is applicable tothe upper segment of the …In this paper, I study the wage a firm sets to attract high abilityworkers (hipo's) in situationsof unemployment. I … show that the higher unemployment, the larger afirm's incentives to sorthigh and low ability workers. Moreover, workers …

We investigate the impact of workers' exposure to unemployment risk on CEO incentive compensation. Exploiting state …-level changes in unemployment benefits as a source of variation in workers' unemployment costs, we find that after unemployment …