The impacts of introducing or tightening time limits on welfare use are studied in an efficiency wage model. Those losing access to regular benefits receive some smaller benefit, which can be interpreted as food stamps. Stricter time limits raise both employment and profits and generally reduce...

We analyze a multitasking model with a verifiable routine task and a skill-dependent activity characterized by moral hazard. Contracts negotiated by firm/employee pairs follow from Nash bargaining. High- and low-skilled employees specialize, intermediate productivity employees perform both...

We analyse the implications of habit formation relating to wages in a multi-period efficiency-wage model. If employees have such preferences, their existence provides firms with incentives to raise wages and reduce employment over time. Greater intensity does not necessarily have the same...

Subjective performance evaluations are commonly used to provide feedback and incentives to workers. However, such evaluations can generate significant disagreements and conflicts, the severity of which may be driven by many factors. In this paper we show that a workers' level of self-confidence...

Gerlach and Stephan (1994) proposed a test based on the idea that the wage premium, the part of the wage which is not explained by the stock of human capital, should help predict variables such as career expectations (quit, change occupation, leave the labour force) and some job characteristics...

This paper describes Gary Becker's theoretical models of marriage. At the micro-level, these are all rational choice models. At the market level, Becker offers two major types of models: partial equilibrium models based on Price Theory as taught by Marshall and Friedman and optimal sorting...