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Managers and investors face a coordination problem when they choose the relative importance of earnings and investments in their respective strategies. I study how the coordination risk (the risk that the manager focuses on one metric while investors give more importance to the other) influences...
Persistent link: https://www.econbiz.de/10013289961
This paper introduces a two-stage union-oligopoly-council model of wage and employment determination wherein at the first stage wage is negotiated through collective bargaining and at the second stage employment in each firm is co-determined by the employer and its works council. We provide a...
Persistent link: https://www.econbiz.de/10013144589
We present a model of neighborhood effects in wage payment delays. Positive feedback arises because each employer's arrears affect the late payment costs faced by other firms in the same local labor market, resulting in a strategic complementarity in the practice. The model is estimated on panel...
Persistent link: https://www.econbiz.de/10013319177
. We solve (i) for the Markov perfect equilibria with no commitment, under the assumption that the union chooses wages each … entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the no … and wages only in the no-commitment case, i.e., the higher the relevance of adjustment costs the higher the wage and …
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wage, and align public sector compensation to private wages in low-skilled professions …
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In this paper, a specific form of human capital is analyzed, relational capital, which consists of matches between market parties. Search and information costs make these matches valuable to both parties. Its peculiarity is that the control over such matches is transferred within firms from...
Persistent link: https://www.econbiz.de/10014171733
In this paper, a specific form of human capital is analyzed, relational capital, which consists of matches between market parties. Search and information costs make these matches valuable to both parties. Its peculiarity is that the control over such matches is transferred within firms from...
Persistent link: https://www.econbiz.de/10014171829