costs influence insider wages and outsiders' opportunities and how these costs affect employment and unemployment. We also …

I provide new microeconometric estimates of the effect of labor market tightness on wages at the firm level. Using … employees, I construct firm-specific measures of labor market tightness. Using this measure, I find an elasticity of wages with …

that referred workers initially earn 4.6 percent higher wages and are 2.3 percentage points less likely to leave their …-specific productivity with a probability of 48.4 percent per year. Counterfactual simulations show that average wages are 3.9 percent lower …

controlled for there is a further pervasive source of bias, namely the co-movement of firm employment and firm wages. In a simple … aggregate or firm level) to firm's employment and wages cause downward bias in OLS regression estimates of RTT. We show that the … between 3.5% and 4.5% of wages at 20 years of tenure — over 80% (50%) of the estimated RTT level itself. The results extend to …

. This suggests that firms and workers bargain frequently over wages, even in the absence of an outside job offer. Moreover … Foxconn's publicly announced wages. Investigating whether individuals act on their updated beliefs, I find evidence that …

Higher wages increase labor costs but improve the productivity of the labor force through several channels. If firms … take this into account and set their wages accordingly, the resulting wages may fail to adjust demand and supply but may … higher wages. All these phenomena are well established empirically. Efficiency wage theory provides an integrated explanation …