Buhai, Sebastian; Portela, Miguel; Teulings, Coen N.; … - 2008
This study documents two empirical regularities, using data for Denmark and Portugal. First, workers who are hired last …, are the first to leave the firm (Last In, First Out; LIFO). Second, workers' wages rise with seniority (= a worker … to seniority in wages. Efficiency in hiring requires the workers' bargaining power to be in line with their share in the …