Table 1.

List of the parameters and variables of the model

Output
A	Nonlinear sum of total factor productivity Aj (Eq. 6)
L1	Total number of primary workers
L2	Total number of secondary workers employed (Eq. 5)
c	Secondary workers’ productivity coefficient
α	Output exponent
Supply of secondary workers
B	Coefficient of labor supply for secondary workers
β	Wage elasticity for secondary workers
Nash Bargaining
w1,j	Wage of the primary workers at firm j (Eq. 10)
w2	Wages of the secondary workers (Eq. 8)
γ	Bargaining power of the primary workers

The variables are determined by the equation referred in parentheses