Basu, Arnab K.; Chau, Nancy H.; Soundararajan, Vidhya - 2019
Labor market subcontracting is a global phenomenon. This paper presents a theory of wage fairness in a subcontracted …, resulting in wages that workers deem unfair, along with adverse worker morale consequences in equilibrium. These insights reveal … the efficiency costs of subcontracting as an employer strategy to redress workers' demand for fair wages. …