Bargaining Versus Efficiency Wages in a Dynamic Labor Market: A Synthesis
We construct a model integrating the efficiency wage model of Shapiro-Stiglitz (1984) with the matching-bargaining models of Diamond, Mortensen and Pissarides (DMP). Firms and workers form pairwise matches, workers may shirk on the job, and the wage is set in an asymmetric Nash bargain over the surplus created by nonshirking. The wage is then always higher, and employment lower, than in both the corresponding Shapiro=Stiglitz and DMP models.
|Date of creation:||1998|
|Contact details of provider:|| Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway|
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-620, September.
- Tore Ellingsen & Asa Rosen, 2003.
"Fixed or Flexible? Wage-setting in Search Equilibrium,"
London School of Economics and Political Science, vol. 70(278), pages 233-250, 05.
- Ellingsen, Tore & Rosén, Åsa, 1997. "Fixed or Flexible? Wage Setting in Search Equilibrium," Working Paper Series 1997:17, Uppsala University, Department of Economics.
- Ellingsen, T. & Rosen, A., 1997. "Fixed or Flexible? Wage Setting in Search Equilibrium," Papers 1997-17, Uppsala - Working Paper Series.
- Ellingsen, Tore & Rosén, Åsa, 1997. "Fixed or Flexible? Wage Setting in Search Equilibrium," SSE/EFI Working Paper Series in Economics and Finance 185, Stockholm School of Economics.
- Strand, Jon, 1991. "Unemployment and Wages under Worker Moral Hazard with Firm-Specific Cycles," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 601-612, August.
- Strand, Jon, 1987. "Unemployment as a Discipline Device with Heterogeneous Labor [Equilibrium Unemployment as a Worker Discipline Device]," American Economic Review, American Economic Association, vol. 77(3), pages 489-493, June.
- Albrecht, James W & Vroman, Susan B, 1998. "Nash Equilibrium Efficiency Wage Distributions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 183-203, February.
- Dale T. Mortensen, 1978. "Specific Capital, Bargaining, and Labor Turnover," Discussion Papers 320, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Peter A. Diamond, 1982. "Wage Determination and Efficiency in Search Equilibrium," Review of Economic Studies, Oxford University Press, vol. 49(2), pages 217-227.
- Carmichael, Lorne, 1985. "Can Unemployment Be Involuntary? Comment [Equilibrium Unemployment as a Worker Discipline Device]," American Economic Review, American Economic Association, vol. 75(5), pages 1213-1214, December.
- W. Bentley MacLeod & James M. Malcomson, 1986.
"Implicit Contracts, Incentive Compatibility, and Involuntary Unemployment,"
585, Queen's University, Department of Economics.
- MacLeod, W Bentley & Malcomson, James M, 1989. "Implicit Contracts, Incentive Compatibility, and Involuntary Unemployment," Econometrica, Econometric Society, vol. 57(2), pages 447-480, March.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
- Ordover, Janusz A. & Shapiro, Carl, 1983.
"Advances in Supervision Technology and Economic Welfare: A General Equilibrium Analysis,"
83-18, C.V. Starr Center for Applied Economics, New York University.
- Ordover, Janusz A. & Shapiro, Carl, 1984. "Advances in supervision technology and economic welfare: a general equilibrium analysis," Journal of Public Economics, Elsevier, vol. 25(3), pages 371-389, December.
- Strand, J., 1992. "Employment and Wages with deferred Wage Payments in Models of Worker Moral Hazard," Memorandum 07/1992, Oslo University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:hhs:osloec:1998_022. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Magnus Gabriel Aase)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.