Firm Wages in a Frictional Labor Market

• 成果类型: Article
• 署名作者: Rudanko, Leena
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20200440
• 发表日期: 2023
• 页码: 517-550
• 关键词: unemployment fluctuations; equilibrium unemployment; cyclical behavior; search; ECONOMICS; aggregate; taxation; size; pay

摘要

This paper studies wage setting in a directed search model of multiworker firms facing within-firm equity constraints on wages. The constraints reduce wages, as firms exploit their monopsony power over their existing workers, rendering wages less responsive to productivity in doing so. They also give rise to a time inconsistency in the dynamic firm problem, as firms face a less elastic labor supply in the short run than in the long run, making commitment to future wages valuable. Constrained firms find it profitable to fix wages, and doing so is good for worker welfare and resource allocation in equilibrium.