In this paper we extend a job search-matching model with firm-specific investments in training developed by Mortensen (2000) to allow for different offer arrival rates in employment and unemployment. The model by Mortensen changes the original wage posting model (Burdett and Mortensen, 1998) in...

This paper explores the sources of bargaining power in wage negotiations. In the standard analyses of wage bargaining, the negotiation partners are specified a priori, and thus it is impossible to address the question of how they achieve and retain their negotiating positions, on which their...