We examine behavioral gender differences and gender pairing effects in a laboratory experiment with face-to-face alternating-offers wage bargaining. Our results suggest that male players are able to obtain better bargaining outcomes than female players. Male employees get higher wages than...

This paper aims to quantify West German mothers' foregone earnings that stem from intermittent labor market participation due to first birth. As Random Effects regression results with German Socio-Economic Panel Data (West) indicate, at the closure time of their fecundity window mothers realize...

We analyze optimal labor contracts when the worker is inequity averse towards the employer. Welfare is maximized for an equal sharing rule of surplus between the worker and the firm. That is, profit sharing is optimal even if effort is contractible. If the firm can make a take-it-or leave-it...