wages are determined by continuous bargaining between the firm and its employees. The model generates a non …We present a generalization of the standard random-search model of unemployment in which firms hire multiple workers … facts about the joint distribution of firm size, firm growth, and wages in the U.S. economy. We also conduct a numerical …

implications of biased expectations for wage bargaining, vacancy creation, worker flows and labor market policies. Importantly, we … find that the specific assumption about the frequency of wage bargaining crucially shapes the propagation mechanism through … which expectation biases affect bargained wages and equilibrium outcomes. Moreover, we show that the presence of biased …

of biased expectations for wage bargaining, vacancy creation, worker flows and labor market policies. Importantly, we … find that under the widely used period-by-period Nash bargaining protocol, the model generates a counterfactual … relationship between workers' job separation expectations and wages. Instead, a wage setting process with less frequent wage …

markets with wage bargaining. We develop a simple extension of the standard search model à la Pissarides (2000) with formal …, or costs associated with red tape and bureaucratic extortion (bribing). Search frictions introduce rent sharing between …, we show that if ceteris paribus a firms' bargaining position vis-a-vis workers is stronger in the formal rather than in …