000			01063nam a22001457a 4500
999			_c522286 _d522286
008			230328b ||||| |||| 00| 0 eng d
100			_aLeena, Rudanko _939181
245			_aFirm wages in a frictional labor market
260			_aAmerican Economic Journal: Macroeconomics
300			_a15(1), Jan, 2023: p.517-550
520			_aThis 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.- Reproduced
773			_aAmerican Economic Journal: Macroeconomics
906			_aLABOUR MARKET
942			_cAR