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In the United States, many laid-off workers are recalled to their former employer. I develop an asymmetric information model of layoffs in which high productivity workers are more likely to be recalled and may choose to remain unemployed rather than accept a low-wage job. In this case,...
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App-based monitoring is widely used in online labor markets to reduce information asymmetry between firms (employers) and contractors. Such monitoring apps provide employers with detailed information on contractors' work progress and effort level. A unique characteristic of app-based monitoring...
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We develop a model in which competition in the labor market may produce worker-firm matches that are inferior to those obtained in the absence of competition. This result contrasts with the conventional wisdom that competition among employers allocates scarce talent efficiently. In a model in...
Persistent link: https://www.econbiz.de/10010497514
Many firms adjust employment in a "lumpy" manner -- infrequently and in large bursts. In this paper, I show that lumpy adjustments can arise from concerns about the incentives of remaining workers. Specifically, I develop a model in which a firm's productivity depends on its workers' effort and...
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