Milner, Joseph M.; Pinker, Edieal J. - In: Management Science 47 (2001) 8, pp. 1046-1062
two models of labor supply uncertainty, termed productivity and availability uncertainty, and study how each affects the … productivity uncertainty we find that it is possible to construct a contract that coordinates the firm and agency hiring in an … optimal way. In contrast, we show that in environments characterized by availability uncertainty, optimal contracts are not …