Employment protection harms early-career employees without benefitting them in later career stages (Leonardi and Pica, 2013). We demonstrate that this pattern can result from employers exploiting na¨ıve present-biased employees. Employers offer a dynamic contract with low early-career wages,...

In this paper we investigate earnings mobility in Austria from the angle of individual persons: earnings mobility over time has two aspects: positional changes and the volatility of earnings over time. Whereas the further is a positive outcome, more volatility as such can be seen as negative. We...