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Strategic Outsourcing, Profit Sharing and Equilibrium Unemployment

Koskela, Erkki; König, Jan - 2021

, profit sharing, and equilibrium unemployment when profit sharing is also a part of a compensation scheme in all industries … sharing. For equilibrium unemployment, we find that if there is also profit sharing in other industries, the effects of … outsourcing and profit sharing on the unemployment rate is ambiguous both in the committed and flexible case …

Persistent link: https://www.econbiz.de/10013324831

Contract Employment as a Worker Discipline Device

Basu, Arnab K. - 2018

Fixed-term contract employment has increasingly replaced regular open-ended employment as the predominant form of employment notably in developing countries. Guided by factory-level evidence showing nuanced patterns of co-movements of regular and contract wages, we propose a two-tiered task...

Persistent link: https://www.econbiz.de/10012915742

Employment Fluctuations with Downward Wage Rigidity : The Role of Moral Hazard

Costain, James - 2009

worker moral hazard only makes the "unemployment volatility puzzle" worse. However, moral hazard has potential to explain …

Persistent link: https://www.econbiz.de/10013157042

Paid to Perform? Compensation Profiles Under Pure Wage and Performance Related Pay Arrangements

Sessions, John G. - 2011

Whilst existing efficiency wage literature assumes detection probabilities of shirkers are exogenous, this paper finds them positively and endogenously dependent on non-shirkers' effort. It shares the result with the endogenous monitoring models where, in some regions, workers reduce effort in...

Persistent link: https://www.econbiz.de/10013127310

Anonymity, Efficiency Wages and Technological Progress

Broadberry, Stephen N. - 2015

Although the Industrial Revolution is often characterized as the culmination of a process of commercialisation, the precise nature of such a link remains unclear. This paper models and analyzes such link: the role of commercialisation in raising efficiency wages as impersonal and anonymous...

Persistent link: https://www.econbiz.de/10013029125

An Efficiency-Wage Model with Habit Concerns About Wages

Goerke, Laszlo - 2020

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...

Persistent link: https://www.econbiz.de/10012828605

Efficiency Wages in Cournot-Oligopoly

De Pinto, Marco - 2019

In a Cournot-oligopoly with free but costly entry and business stealing, output per firm is too low and the number of competitors excessive, assuming labor productivity to depend on the number of employees only or to be constant. However, a firm can raise the productivity of its workforce by...

Persistent link: https://www.econbiz.de/10012868832

The Todaro Paradox Revisited

Zenou, Yves - 2005

The Todaro Paradox states that policies aimed at reducing urban unemployment are bound to backfire: they will raise … rather than reduce urban unemployment. The aim of this paper is to reexamine this paradox in the context of efficiency wage … and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an …

Persistent link: https://www.econbiz.de/10012784075

Selection Wages : An Example

Schlicht, Ekkehart - 2021

Offering higher wages may enable firms to attract more applicants and screen them more carefully. If firms compete in this way in the labor market, "selection wages" emerge. This note illustrates this wage-setting mechanism. Selection wages may engender unconventional results, such as a pre-tax...

Persistent link: https://www.econbiz.de/10013317285

Earnings-Related Severance Pay

Goerke, Laszlo - 2021

In an efficiency wage economy, lump-sum severance pay from which shirkers can be excluded raises employment. However, severance payments are usually related to wages. It is shown that earnings-related, mandated severance pay will have ambiguous employment effects if effort can be varied...

Persistent link: https://www.econbiz.de/10013317508