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We present a model of wage contract violation that implies a possibility of multiple equilibria in the level of arrears. Positive feedback arises because each employer's arrears affect the costs of late payment faced by other employers operating in the same labor market, resulting in a network...
Persistent link: https://www.econbiz.de/10005822557
Empirical evidence reveals that unemployment tends to increase property crime but that it has no effect on violent … crime. To explain these facts, we examine a model of criminal gangs and suggest that there is a substitution effect between … property crime and violent crime at work. In the model, non-monetary valuation of gang membership is private knowledge. Thus …
Persistent link: https://www.econbiz.de/10005703746
Recent evidence on functional income distribution suggests that the shares of capital and labour in national income vary considerably both over time and across countries. Specifically, there seems to be a general reduction in the labour share around the world, in particular from the mid-1980s...
Persistent link: https://www.econbiz.de/10010884358
We show that wage setting in the Colombian manufacturing industry is not fundamentally driven by labor productivity in contrast to the standard theoretical prediction. On the contrary, internal institutional arrangements – payroll taxation, the minimum wage or the price wedge between...
Persistent link: https://www.econbiz.de/10011228304
This paper considers the policy options of the West Bank and Gaza (WBG) with respect to trade and the exports of labor services. It concludes that i) a non-discriminatory trade policy (NDTP) is unambiguously superior to an FTA with Israel; ii) the WBG should pursue a NDTP with all its neighbors,...
Persistent link: https://www.econbiz.de/10005822305
We present a model of neighborhood effects in wage payment delays. Positive feedback arises because each employer’s arrears affect the late payment costs faced by other firms in the same local labor market, resulting in a strategic complementarity in the practice. The model is estimated on...
Persistent link: https://www.econbiz.de/10005763706
The monopoly position of the public bureaucracy in providing public services allows government employees to acquire rents. Those rents can involve higher wages, monetary and non-monetary fringe benefits (e.g. pensions and staffing), and/or bribes. We propose a direct measure to capture the total...
Persistent link: https://www.econbiz.de/10005700927
What role do community norms play in the diffusion and persistence of new organizational practices? We explore this question through an examination of the widespread practice of wage arrears, the late and non-payment of wages, in Russia during the 1990s. Existing research on wage arrears most...
Persistent link: https://www.econbiz.de/10005761724
provide a quantitative summary of the available evidence regarding the influence of labour market institutions on real wage …
Persistent link: https://www.econbiz.de/10005822141
contribution of worker and firm reallocation to changes in earnings inequality within and across industries between 1992 and 2003 … also suggest that the dynamics driving changes in earnings inequality are heterogeneous across industries. …
Persistent link: https://www.econbiz.de/10009386632