Bovenberg, A.L.Bovenberg; Teulings, C.N. - Tilburg University, Center for Economic Research - 2002
We explore the role of firms in insuring risk-averse workers.As a device that allows workers to commit to the delivery of their output, the firm arises endogenously as an alternative to the spot market if workers are suciently risk averse and the firm can base incentive payments on good...