We propose a dynamic model that explains why individuals may be reluctant to pick up work although the wage is above their reservation wage. Accepting low paid work will put them in an adverse position in future wage bargaining, as employers could infer the individual's low reservation wage from...

Several empirical studies in the literature have documented the existence of a positive correlation between income inequalitiy and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under...

Several empirical studies in the literature have documented the existence of a positive correlation between income inequality and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under...

Using a representative establishment data set for Germany, we show that more than 40 percent of plants covered by collective agreements pay wages above the level stipulated in the agreement, which gives rise to a wage cushion between the levels of actual and contractual wages. Cross-sectional...

Using a representative establishment data set for Germany, we show that more than 40 percent of plants covered by collective agreements pay wages above the level stipulated in the agreement, which gives rise to a wage cushion between the levels of actual and contractual wages. Cross-sectional...

This paper sets out the main lessons learnt from a survey of wage-setting in the United Kingdom, carried out as part of the European Central Bank's Wage Dynamics Network survey covering 25 European countries. The survey covered the 2010-13 period, during which most firms experienced an increase...

The purpose of this paper is to ascertain how wages are being determined in China during the reform period. The paper focuses on the development of the regulatory framework since 1978 and proceeds by examining official regulations regarding labor market institutions and wage setting, and by...

This paper discusses the endeavours of policy makers to come to some degree of wage coordination among EU countries, aiming at aligning wage growth with labour productivity growth at the national levels. In this context, we analyse the wage and productivity developments in Germany, the European...

In this study we focus on differences in careers and wage development between white-collar workers. We are interested in the questions of which factors contribute to these differences and at what stage of the career they occur. Furthermore, we investigate the wage effects of the different types...

In this study we focus on differences in careers and wage development between white-collar workers. We are interested in the questions of which factors contribute to these differences and at what stage of the career they occur. Furthermore, we investigate the wage effects of the different types...