International comparisons show that countries with co-ordinated wage setting generally have lower unemployment than … circumstances a passive regime may induce co-operation in wage setting, and thus lower unemployment, when a stricter regime would …

In this paper, I study the wage a firm sets to attract high abilityworkers (hipo's) in situationsof unemployment. I … show that the higher unemployment, the larger afirm's incentives to sorthigh and low ability workers. Moreover, workers … will signal their(high) ability in situationsof (high) unemployment only if a job offers a high enough wage. Themain result …