The paper considers a simple "three goods" model in which firms simultaneously decide hiring workers. The production is sold later at a market clearing price; the buyers'purchasing power depend on their income, that itself depends on the firms'previous decisions. The rational expectations...

This paper studies the changes in earnings inequality. It also examines the causes and consequences of this changes.

This paper offers an alternative theory for the increase in unemployment and wage inequality experienced in the U.S. over the past two decades. In my model firms decide the composition of jobs and then match with skilled and unskilled workers.

This paper uses a unique panel data at the level bargaining group to examine aspects of 'right-to manage' models of wage determination. Empirical measures of firms' and unions' bargaining power are identified and found to be important influences on wage setting.