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Wage Bargaining and Turnover Costs with Heterogeneous Labour: The No-screening Case

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  • Strand, J.

Abstract

We study the effects of mobility costs in a model of wage bargaining between workers and firms, where there is instantaneous matching, free firm entry, heterogeneous labour, and workers' individual productivities are discovered by firms only after being hired. We derive the employment level and the minimum quality standard, in the market solution and in the socially efficient solution.

Suggested Citation

  • Strand, J., 1998. "Wage Bargaining and Turnover Costs with Heterogeneous Labour: The No-screening Case," Memorandum 14/1998, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:1998_014
    as

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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/1998/Memo-14-1998.pdf
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    References listed on IDEAS

    as
    1. Bertola, Giuseppe, 1990. "Job security, employment and wages," European Economic Review, Elsevier, vol. 34(4), pages 851-879, June.
    2. Christopher A. Pissarides, 1994. "Search Unemployment with On-the-job Search," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 457-475.
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    6. Christopher A. Pissarides, 1987. "Search, Wage Bargains and Cycles," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 473-483.
    7. Gilles Saint-Paul, 1995. "The High Unemployment Trap," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 527-550.
    8. Giuseppe Bertola & Ricardo J. Caballero, 1994. "Cross-Sectional Efficiency and Labour Hoarding in a Matching Model of Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 435-456.
    9. Bertola, Giuseppe, 1992. "Labor Turnover Costs and Average Labor Demand," Journal of Labor Economics, University of Chicago Press, vol. 10(4), pages 389-411, October.
    10. Pissarides, Christopher A, 1985. "Short-run Equilibrium Dynamics of Unemployment Vacancies, and Real Wages," American Economic Review, American Economic Association, vol. 75(4), pages 676-690, September.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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