Similar Search Results

Local social capital and geographical mobility : a theory

David, Quentin (contributor); Janiak, Alexandre (contributor) - 2008

In this paper, we attempt to understand the determinants of mobility by introducing the concept of local social capital. Investing in local ties is rational when workers anticipate that they will not move to another region. Reciprocally, once local social capital is accumulated, incentives to...

Persistent link: https://www.econbiz.de/10003752851

Transparency, inequity aversion, and the dynamics of peer pressure in teams : theory and evidence

Mohnen, Alwine (contributor); Pokorny, Kathrin (contributor) - 2008

We provide an explanation for peer pressure in teams based on inequity aversion. Analyzing a two-period model with two agents, we find that the effect of inequity aversion strongly depends on the information structure. When contributions are unobservable, agents act as if they were purely...

Persistent link: https://www.econbiz.de/10003652683

Commuting, wages and bargaining power

Rupert, Peter; Stancanelli, Elena G. F.; Wasmer, Etienne - 2009

A search model of the labor market is augmented to include commuting time to work. The theory posits that wages are … impact of commute time on job acceptance decisions. We also use the theory to calculate the bargaining power of workers which …

Persistent link: https://www.econbiz.de/10003905644

Layoff costs and efficiency with asymmetric information

Delacroix, Alain; Wasmer, Etienne - 2009

Wage determination under asymmetric information generates inefficiencies due to excess turnover. Severance pay and layoff taxes can improve efficiency. We show that inefficient separations can even be fully removed with fixed separation taxes in the case where the relevant private information is...

Persistent link: https://www.econbiz.de/10003906313

Should you allow your agent to become your competitor? : On non-compete agreements in employment contracts

Kräkel, Matthias (contributor); Sliwka, Dirk (contributor) - 2006

We discuss a principal-agent model in which the principal has the opportunity to include a non-compete agreement in the employment contract. We show that not imposing such an agreement can be beneficial for the principal as the possibility to leave the firm generates implicit incentives for the...

Persistent link: https://www.econbiz.de/10003301668

Universities as stakeholders in their students' careers : on the benefits of graduate taxes to finance higher education

McKenzie, Tom; Sliwka, Dirk - 2010

We examine ways of funding higher education, comparing upfront tuition fees with graduate taxes. The tax dominates, as volatility in future income is transferred from risk-averse students to the risk-neutral state. However, a double moral hazard problem arises when students' efforts to raise...

Persistent link: https://www.econbiz.de/10009303444

Macroeconomic dynamics in a model of goods, labor and credit market frictions

Petrosky-Nadeau, Nicolas; Wasmer, Etienne - 2011

Building a model with three imperfect markets - goods, labor and credit - representing a product's life-cycle, we find that goods market frictions drastically change the qualitative and quantitative dynamics of labor market variables. The calibrated model leads to a significant reduction in the...

Persistent link: https://www.econbiz.de/10009307979

A steady-state model of a non-walrasian economy with three imperfect markets

Wasmer, Etienne - 2011

Unemployment may depend on equilibrium in other markets than the labor markets. This paper adresses this old idea by introducing search frictions on several markets: in a model of credit and labor market imperfections as in Wasmer and Weil (2004), I further introduce search on the goods market....

Persistent link: https://www.econbiz.de/10009308020

Labor market efficiency, wages and employment when search frictions interact with intrafirm bargaining

Cahuc, Pierre; Wasmer, Etienne - 2001

In search of a macroeconomic theory of wage determination, the agnostic reader should be puzzled by the apparent … contradiction between two influential theories. On one hand, in the standard search-matching theory with wage bargaining, hiring … overemployment or to under-employment compared with the first-best. On the other hand, in Stole and Zwiebel's theory of intrafirm …

Persistent link: https://www.econbiz.de/10011401500

Space, search and efficiency

Wasmer, Etienne; Zenou, Yves - 2000

We investigate the role of spatial frictions in search equilibrium unemployment. For that, we develop a model of the labor market in which workers? location in an agglomeration depends on commuting costs, the endogenous price of land and the value of job search and employment. We first show that...

Persistent link: https://www.econbiz.de/10011336862