impact of commute time on job acceptance decisions. We also use the theory to calculate the bargaining power of workers which …A search model of the labor market is augmented to include commuting time to work. The theory posits that wages are … positively related to commute distance, by a factor itself depending negatively on the bargaining power of workers. Since not all …

In search of a macroeconomic theory of wage determination, the agnostic reader should be puzzled by the apparent … contradiction between two influential theories. On one hand, in the standard search-matching theory with wage bargaining, hiring … overemployment or to under-employment compared with the first-best. On the other hand, in Stole and Zwiebel's theory of intrafirm …

We examine wage competition in a model where identical workers choose the number of jobs to apply for and identical … where workers apply for just one job exhibits unemployment and absence of wage dispersion; (ii) an equilibrium where workers …