Lin, Chung-Cheng; Yang, C.C - In: Journal of Post Keynesian Economics 25 (2003) 3, pp. 515-524
This paper proposes a labor-adverse selection model where labor quality within an individual firm negatively depends upon the average working hours in the market. Under this setting, labor quality is a "pure public good" by nature, and the free market equilibrium will result in inefficient...