Hours and wages: A bargaining approach

Elena Del Rey, Joaquín Naval Navarro and José Silva

Economics Letters, 2022, vol. 217, issue C

Abstract: In a recent paper, Bick et al. (2022) show the presence of a hump-shaped relationship between hours and hourly wages with a maximum around 50 h worked. We show that a model with fixed labor costs where workers and firms bargain in wages and hours can help explain this non-linear relationship. Also, a quantitative version of the model is able to match the empirical hourly-wage to hours worked relationship estimated by those authors for the US.

Keywords: Fixed labor costs; Wage–hours relationship; Bargaining (search for similar items in EconPapers)
JEL-codes: C78 E24 J31 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Hours and Wages: A Bargaining Approach (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:217:y:2022:i:c:s0165176522002105

DOI: 10.1016/j.econlet.2022.110652

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