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... the worker. this cost cm is lower than the maximum cost cm , which leads the worker not to sue the firm. probability that the worker files a suit, pf , probability pc that the case ends with a formal agreement (judge) when the conciliation fails, probability that the worker ...
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Microsoft Word - paper_flex_kramarz.doc
... the case with a formal agreement in front of the judge (pc 1 if he does, pc 0 otherwise). the firm also knows the probability that the worker wins if the trial occurs, pw. we assume that during the conciliation step, the ...
cpb.nl
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