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Insurance and asymmetric information in wage contracts : evidence from an online experiment

Herbst, Daniel - 2025

For workers facing uncertain output, fixed-wage contracts provide implicit insurance compared to self-employment or performance-based pay. But like any insurance product, these contracts are prone to market distortions through moral hazard and adverse selection. Using a model of wage contracts...

Persistent link: https://www.econbiz.de/10015414158

From public monopsony to competitive market : more efficiency but higher prices

Delfgaauw, Josse; Dur, Robert A. J. - 2003

This paper examines the consequences of creating a fully competitive market in a sector previously dominated by a cost-minimising public firm. Workers in the economy are heterogeneous in their motivation to work in the sector. In line with empirical findings, our model implies that firms in the...

Persistent link: https://www.econbiz.de/10011404420

Paid to quit

Dur, Robert A. J.; Schmittdiel, Heiner - 2015

Inspired by a recent observation about an online retail company, this paper explains why a firm may find it optimal to offer an exit bonus to recent hires so as to induce self-selection. We study a double adverse selection problem, in which the principal can neither observe agents’ commitment...

Persistent link: https://www.econbiz.de/10011405134

Bonus question : how does flexible incentive pay affect wage rigidity?

Gaur, Meghana; Grigsby, John; Hazell, Jonathon; Ndiaye, … - 2024

response of unemployment in our incentive pay model calibrated to strongly procyclical wages. …We introduce dynamic incentive contracts into a model of inflation and unemployment dynamics. Our main result is that … wage cyclicality from incentives neither affects the slope of the Phillips curve for prices nor dampens unemployment …

Persistent link: https://www.econbiz.de/10015046287

"The double dividend of Training" : labor market effects of work-related continuous education in Switzerland

Denzler, Stefan; Ruhose, Jens; Wolter, Stefan C. - 2022

risk of unemployment two years after the treatment. However, the effects are heterogeneous as to gender, age, education …

Persistent link: https://www.econbiz.de/10013413337

Human capital depreciation

Dinerstein, Michael; Megalokonomou, Rigissa; Yannelis, … - 2020

Human capital can depreciate if skills are unused. But estimating human capital depreciation is challenging, as worker skills are difficult to measure and less productive workers are more likely to spend time in non-employment. We overcome these challenges with new administrative data on...

Persistent link: https://www.econbiz.de/10012299493

Altruism and envy in contests : an evolutionarily stable symbiosis

Konrad, Kai A. - 2002

Altruists and envious people who meet in contests are symbionts. They do better than a population of narrowly rational individuals. If there are only altruists and envious individuals, a particular mixture of altruists and envious individuals is evolutionarily stable.

Persistent link: https://www.econbiz.de/10011514081

Beyond the labour income tax wedge : the unemployment-reducing effect of tax progressivity

Lehmann, Etienne; Lucifora, Claudio; Moriconi, Simone; … - 2013

the unemployment rate and increases the employment rate. From a theoretical point of view, higher progressivity induces a … average wage, we show that a more progressive taxation reduces the unemployment rate and increases the employment rate. These …

Persistent link: https://www.econbiz.de/10009772806

Labor tax progressivity, wage determination, and the relative wage effect

Brunello, Giorgio; Sonedda, Daniela - 2002

care about their relative wages, and show that the presence of a relative wage concern could help generation a positive …

Persistent link: https://www.econbiz.de/10011409953

Optimal income taxation with unemployment and wage responses : a sufficient statistics approach

Kroft, Kory; Kucko, Kavan; Lehmann, Etienne; Schmieder, … - 2017

We derive a sufficient statistics optimal income tax formula in a general model that incorporates unemployment and … endogenous wages, to study the shape of the tax and transfer system at the bottom of the income distribution. The sufficient … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …

Persistent link: https://www.econbiz.de/10011735961