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The introduction of firm size into labor search models raises the question how wages are set when average and marginal … more vacancies, but also by offering higher lifetime wages that attract more workers which allows to fill vacancies with …
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Workfare proposals concentrate on the work incentives for welfare recipients, thus focusing on the labor supply side. This paper analyzes the effects workfare has on labor demand when the labor market is unionized. As workfare reduces the number of recipients of public financial assistance, a...
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Suppose insiders use their market power to push up their wages, while entrants receive their reservation wages. How …
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