Abstract / Description of output
This paper uses the notion of the Stable Set, in conjunction with a mild restriction on the extent to which a firm can quickly replace its entire workforce, to explain equal treatment across workers within a firm yet wage differentials across firms, and why a firm responds with quantity rather than with wage adjustments to shocks.
Original language | English |
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Pages (from-to) | 721-730 |
Number of pages | 10 |
Journal | Scottish Journal of Political Economy |
Volume | 54 |
Issue number | 5 |
Publication status | Published - Nov 2007 |