percent and 1 percent of the within-firm wage distribution rise substantially. Instead, the effect on average wages is small …

, therefore,says that a firm sets higher wages, the higher unemployment. As themodel is applicable tothe upper segment of the …In this paper, I study the wage a firm sets to attract high abilityworkers (hipo's) in situationsof unemployment. I … show that the higher unemployment, the larger afirm's incentives to sorthigh and low ability workers. Moreover, workers …