Drautzburg, Thorsten; Fernández-Villaverde, Jesús; … - 2020
We argue that social and political risk causes significant aggregate fluctuations by changing bargaining power. To that …, modifications in collective bargaining rules, or the end of dictatorships, in a sample of developed and emerging economies. These … exogenous changes in the bargaining power of workers in a labor market with search and matching. We calibrate the model to the U …