Bender, Keith A.; Mridha, Hosne - In: Southern Economic Journal 78 (2011) 2, pp. 287-307
Compensating wage differential (CWD) theory assumes that workers can always find a job without undesired characteristics, which forces firms with disamenities to pay a CWD. However, a simple theoretical variation of standard CWD theory shows that if there is a probability of job loss due to...