This paper explores the possibility of privately inefficient job separations due to bargaining friction and its … implications for the unemployment dynamics. I propose a simple specification of bargaining friction by including bargaining wedges … in the standard Nash bargaining model. Such bargaining wedge arises when, for example, wages are determined by …

-contractible but can be included in extended collective bargaining when workers participate in management, but employment is still … traditional bargaining over wages to extended (but still second-best) bargaining can generate a Pareto welfare improvement. -- job …-satisfaction; bargaining ; unemployment …

In this paper we investigate the quantitative importance of search and matching fric- tions in Bulgarian labor markets …

It has been noted that the search and matching model cannot account for the observed unemployment fluctuations. Gertler … heterogeneity. We find that the new model with even only a small fraction of sticky wage contracts comes closer to matching the data. …