Nash Bargaining, Credible Bargaining and Efficiency Wages in a Matching Model for the US
AbstractThis paper incorporates Nash bargaining, credible bargaining and efficiency wages as special cases of an over-arching model of wage determination in a matching model that is used to assess econometrically how well each fits US data.� With Nash bargaining, estimates for worker bargaining power and the value of non-work activity are almost identical to those calibrated by Hagedorn and Manovskii (2008).� However, the over-identifying restrictions are overwhelmingly rejected statistically, as they are for credible bargaining.� Efficiency wages fit the data better, with the over-identifying restrictions not rejected statistically, and result in a lower, more plausible estimated value of non-work activity.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 511.
Date of creation: 01 Nov 2010
Date of revision:
Matching frictions; wage bargaining; efficiency wages; unemployment; shirking;
Other versions of this item:
- Sophocles Mavroeidis & James Malcomson, 2011. "Nash Bargaining, Credible Bargaining and Efficiency wages in a matching model for the US," 2011 Meeting Papers 776, Society for Economic Dynamics.
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-20 (All new papers)
- NEP-DGE-2010-11-20 (Dynamic General Equilibrium)
- NEP-MAC-2010-11-20 (Macroeconomics)
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