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The Dynamic Wage Barganing Problem

Author

Listed:
  • Renuka Metcalfe

    (University of Swansea)

Abstract

This paper considers dynamic equilibria in wage bargaining unifying for the first time the models of Coles and Wright (1998) and Pissarides and producing in contrast to the Coles and Wright model, a non-deficient equilibrium. In sharp contrast to the Pissarides model we analyse a fully dynamic model with non-linear cost functions and risk-averse agents, to provide overall, saddle-path stability and unique wage and employment outcome which is devoid of limit cycles.

Suggested Citation

  • Renuka Metcalfe, 2006. "The Dynamic Wage Barganing Problem," School of Economics Discussion Papers 1106, School of Economics, University of Surrey.
    • Handle: RePEc:sur:surrec:1106
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    File URL: https://repec.som.surrey.ac.uk/2006/DP11-06.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Wage determination; job matching; unemployment; labour markets; bargaining.;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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