Wage Bargaining with On-the-job Search: Theory and Evidence - Supplemented Material: Bargaining in Presence of a Legal Minimum Wage

In this Appendix we consider the existence of a wage floor, Wmin, such that no firm can make a wage offer of less than Wmin at any stage of the bargaining process. For simplicity, we shall work under the assumption that workers are homogeneous conditional on their observed attributes, i.e. we shall assume away any dispersion in the workers? ε?s (and consequently drop the dependence on ε of all functions in the analysis to come). We otherwise take up the concepts and notation of the main text.

Supplemental Authors: 
Pierre Cahuc, Fabien Postel-Vinay, Jean-Marc Robin