Reduced form wage equations in the credible bargaining model

B-Tier
Journal: Labour Economics
Year: 2018
Volume: 50
Issue: C
Pages: 92-96

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We derive an explicit solution for the wage from an alternating-offer wage bargaining game à la Hall and Milgrom (2008) under a plausible parameter restriction. This solution is simple, micro-founded and permits a transparent analysis of the driving forces of wages. When it is used in a stationary steady-state search and matching model, the value of all endogenous variables can be expressed as a function of the parameters of the model and the exogenous variables. In a dynamic setup, the solution is much simpler to implement than the one found in the original paper of Hall and Milgrom (2008).

Technical Details

RePEc Handle
repec:eee:labeco:v:50:y:2018:i:c:p:92-96
Journal Field
Labor
Author Count
2
Added to Database
2026-01-25