The study looks at how bargaining within a company affects hiring practices and labor market fluctuations. When firms can negotiate wages with existing workers, they may hire too many new workers to keep wages low. This can lead to ups and downs in the job market. The study shows that the bargaining power of existing workers influences how many extra workers a firm hires. By considering these factors, the model better reflects real-world labor market trends, like fluctuations in employment and hours worked. The findings suggest that the way firms negotiate with their workers can impact how the labor market behaves during economic cycles.