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Wage Bargaining with On-the-Job Search: Theory and Evidence
Most applications of Nash bargaining over wages ignore between-employer competition for labor services and attribute all of the workers' rent to their bargaining power. In this paper, we write and… Expand
Inherited Trust and Growth
This paper develops a new method to uncover the causal effect of trust on economic growth by focusing on the inherited component of trust and its time variation. We show that inherited trust of… Expand
Regulation and Distrust
In a cross-section of countries, government regulation is strongly negatively correlated with social capital. We document this correlation, and present a model explaining it. In the model, distrust… Expand
Regulation and Distrust 1
We document that, in a cross section of countries, government regulation is strongly negatively correlated with measures of trust. In a simple model explaining this correlation, distrust creates… Expand
Two-Tier Labor Markets in the Great Recession: France vs. Spain
This paper analyzes the strikingly different response of unemployment to the Great Recession in France and Spain. Their labor market institutions are similar and their unemployment rates just before… Expand
Temporary Jobs, Employment Protection and Labor Market Performance
Many European labor markets are characterized by heavy employment protection taxes and the widespread use of fixed-duration contracts. The simultaneous use of these two policy instruments seems… Expand
Civic Virtue and Labor Market Institutions
We argue civic virtue plays a key role in explaining the design of public insurance against unemployment risks by solving moral hazard issues which hinder the efficiency of unemployment insurance. We… Expand
DOES INTRAFIRM BARGAINING MATTER IN THE LARGE FIRM'S MATCHING MODEL?
We analyze the role of intrafirm bargaining in the large-firm matching model and underline the conditions under which the Pissarides equivalence between this model and the â€œsingle-workerâ€ firm's… Expand
A Theory of Wages and Labor Demand with Intra-Firm Bargaining and Matching Frictions
This article provides a model of labor market equilibrium with search and within-firm strategic bargaining. We yield explicit closed form solutions with heterogeneous labor inputs and capital. The… Expand
The Roots of Low European Employment: Family Culture?
First we provide a simple labor supply model in which heterogeneity in family preferences can account for cross-country variations in both the level and the dynamics of employment rates of… Expand