We show that the severance pay scheme can serve as bond and improve the welfare. When the authority appropriately adjudges the worker's effort, the increase in a severance payment reduces the shirker''s expected benefit, so that the severance pay works as a bond, which is warranted by the authority.

This paper develops an efficiency wage model to highlight public policy for relieving unemployment. For the purposes of relief, we present unemployment benefits, public employment programs and wage subsidies. The results show that unemployment benefits have a negative effect on the employment...

This paper develops an efficiency wage model to highlight public policy for relieving unemployment. For the purposes of relief, we present unemployment benefits, public employment programs and wage subsidies. The results show that unemployment benefits have a negative effect on the employment...

This paper describes the relation between fertility and intergenerational child-care support provided by grandparents in a model based on the overlapping generations model with endogenous fertility. Results show that intergenerational child-care support causes fertility to fluctuate. This paper...