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rates and the share of temporary contracts is established. The bargaining hypothesis that job security and wages are … hypothesis is contrasted with Rosen's theory of equalising differences where security and wages are substitutes. The empirical … insecurity and wages significantly negative level effects are found for Germany with some evidence for those in the UK. There is …
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Individual labor earnings observed in worker panel data have complex, highly persistent dynamics. We investigate the capacity of a structural job search model with i.i.d. productivity shocks to replicate salient properties of these dynamics, such as the covariance structure of earnings, the...
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According to the standard principal-agent model, the optimal composition of pay should balance the provision of incentives with the individual demand for insurance. Do income taxes alter this balance? We show that the relative share of PRP on total pay is reduced by higher average taxes, and is...
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