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Learning of general equilibrium effects and the unemployment trap

Gersbach, Hans; Schniewind, Achim - 2001

unemployment results. With an intermediate view, when partial equilibrium effects are taken into account, high real wages and … unemployment results, which may explain the persistence of high unemployment in Europe. If all general equilibrium effects are … incorporated at once, again low real wages and low unemployment results. We thus obtain a hump-shaped relationship between the …

Persistent link: https://www.econbiz.de/10011391642

Profit sharing: consequences for workers : profit sharing, a formal "bonus" program based on firm profitability can provide strong employee motivation if properly designed

Fang, Tony - 2016

Profit sharing can lead to higher productivity and thus to higher firm profitability and employee wages. It may also enhance employment stability by enabling firms to adjust wages during downturns rather than lay off workers. While adoption of profit sharing increases earnings fluctuations, it...

Persistent link: https://www.econbiz.de/10011434022

Wage bargaining when workers have fairness concerns : conference paper

Gogova, Martina Nikolaeva; Kragl, Jenny - 2013

We analyze optimal labor contracts when the worker is inequity averse towards the employer. Welfare is maximized for an equal sharing rule of surplus between the worker and the firm. That is, profit sharing is optimal even if effort is contractible. If the firm can make a take-it-or leave-it...

Persistent link: https://www.econbiz.de/10010341624

Profit sharing as a bargaining weapon against unions

Pecheu, Vladimir - 2021

Persistent link: https://www.econbiz.de/10012548143

Workfare in an efficiency wage model

Meier, Volker - 2002

The impacts of introducing work requirements for welfare recipients are studied in an efficiency wage model. If the workfare package is not mandatory, it will reduce employment, profits, and utility levels of employed and unemployed workers. In contrast, mandatory effort requirements will...

Persistent link: https://www.econbiz.de/10011409174