This paper studies firms' adjustment behavior to the growth in labor costs induced by Italian collective bargaining … geographic location, exploiting discontinuities in contractual wages' growth as a source of variation in labor costs. Results … workers' average quality do not change in response to higher labor costs. These effects are highly heterogeneous across the …

This paper studies firms' adjustment behavior to the growth in labor costs induced by Italian collective bargaining … geographic location, exploiting discontinuities in contractual wages' growth as a source of variation in labor costs. Results … profit margin and capital intensity do not change in response to higher labor costs. These effects are heterogeneous across …

heterogeneous-firm model with a monopsonistic labor market and endogenous firm variety. The decentralized equilibrium underprovides …

already fragile labor market, Covid-19 has raised the urgency of action. This paper reviews labor market policy and other … find much scope for improving the design of key labor market institutions-including collective bargaining and employment … protection legislation-and active labor market policies to improve job seekers' prospects. These reforms should come hand …