The existence of counteroffers can lead to a variety of important labor-market features. This article develops a model of the selective use of counteroffers in which a firm decides whether to extend counteroffers after a worker informs the firm of an alternative offer. We outline factors that can influence the employer's net value of making a counteroffer and, thus, affect the likelihood of a counteroffer. We provide a new empirical analysis that examines whether proxies for these factors do, in fact, influence the likelihood that a firm would consider a counteroffer to an employee with a competing offer.
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- Perri, Timothy J., 1995. "Is there a winner's curse in the labor market?," Journal of Economic Behavior & Organization, Elsevier, vol. 28(1), pages 79-89, September.
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"The Distribution of Earnings in an Equilibrium Search Model with State-Dependent Offers and Counteroffers,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Fabien Postel-Vinay & Jean-Marc Robin, 2002. "The Distribution of Earnings in an Equilibrium Search Model with State-Dependent Offers and Counteroffers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 989-1016, November.
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