Credible threats in a wage bargaining model with on-the-job search

This note shows that in standard equilibrium search models with strategic wage bargaining and on-the-job search, renegotiation does not require mutual consent. if the worker needs a credible threat to trigger renegotiation, wages are renegotiated less frequently than in the original model. (C) 2012 Elsevier B.V. All rights reserved.