TY  - RPRT
        AU  - Auray, Stéphane
AU  - Danthine, Samuel
        TI  - Bargaining Frictions and Hours Worked
        PY  - 2005/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1722
        UR  - https://www.iza.org/publications/dp1722
        AB  - A matching model with labor/leisure choice and bargaining frictions is used to explain (i) differences in GDP per hour and GDP per capita, (ii) differences in employment, (iii) differences in the proportion of part-time work across countries. The model predicts that the higher the level of rigidity in wages and hours the lower are GDP per capita, employment, part-time work and hours worked, but the higher is GDP per hours worked. In addition, it predicts that a country with a high level of rigidity in wages and hours and a high level of income taxation has higher GDP per hour and lower GDP per capita than a country with less rigidity and a lower level of taxation. This is due mostly to a lower level of employment. In contrast, a country with low levels of rigidity in hour and in wage setting but with a higher level of income taxation has a lower GDP per capita and a higher GDP per hour than the economy with low rigidity and low taxation, because while the level of employment is similar in both economies, the share of part-time work is larger.
        KW  - labor market institutions
KW  - economic performance
KW  - bargaining frictions
KW  - models of search and matching
KW  - part-time jobs
KW  - labor market rigidities
        ER  -