Short-time work compensation aims at reducing lay-offs by allowing employers to temporarily reduce hours worked while compensating workers for the induced loss of income. These programs are now widespread in the OECD countries, notably following the 2008-2009 crisis. This paper discusses the...

Most applications of Nash bargaining over wages ignore between-employer competition for labor services and attribute all of the workers' rent to their bargaining power. In this paper, we write and estimate an equilibrium model with strategic wage bargaining and on-the-job search and use it to...

In this article, we propose a simple model aimed at explaining the extremely short duration of most temporary contracts. This model takes into account an important characteristic of EPL in Continental Europe that has been neglected by the literature so far. We show that a stringent EPL raises...

The general reduction of employer social contributions on low wages is the main employment policy in France with an annual expenditure of about 1 per cent of GDP. This study shows that low skilled jobs in services are the main beneficiaries of this measure. We estimate that removing the part of...

We show the existence of a twin peaks relation between trust and the size of the welfare state that stems from two opposing forces. Uncivic people support large welfare states because they expect to benefit from them without bearing their costs. But civic individuals support generous benefits...

This paper presents a short overview of dynamic models of labor markets with transaction costs. It shows that these models have deeply renewed the understanding of job search, job flows, job creations and destructions, unemployment and wage formation. It argues that this renewal provides a very...