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The employment structure of India's organised manufacturing sector has undergone substantial changes over the last decade with a steep rise in the use of contract workers in place of directly hired workers. Much of the existing literature has attributed the widespread use of contract labour to...
Persistent link: https://www.econbiz.de/10011961364
This paper analyzes a labor market, where firms offer workers incentive contracts and make decisions about irreversible capital investments. The state authority regulates the institutional framework by choosing the level of unemployment benefits and the workers' bargaining power. Our results...
Persistent link: https://www.econbiz.de/10013083973
This paper discusses the pros and cons of a single labour contract. After reviewing the current state of dualism in labour markets and the recent labour reforms in Europe, we discuss the various proposals to eliminate dualism. Next, we emphasise the costs of dualism and discuss whether they...
Persistent link: https://www.econbiz.de/10009711214
efficiency arguments are questionable, because of the disemployment effects of strict regulation. Regulation is better explained … rationally desires strict regulation to divert rent from other groups such as the skilled workers and the unemployed. Legal … tradition. Given a predisposition to intervene, these countries begin with some degree of labour regulation, which then creates …
Persistent link: https://www.econbiz.de/10012779043
of regulation and is almost exclusively based on international cross-section data for the post-1995 period. This paper …
Persistent link: https://www.econbiz.de/10013099682
Recent research seeking to explain the strong cyclicality of US unemployment emphasizes the role of wage rigidity. This paper proposes a micro-founded model of wage rigidity - an equilibrium business cycle model of job search, where risk neutral firms post optimal long-term contracts to attract...
Persistent link: https://www.econbiz.de/10012764111
This paper examines how employer- and worker-specific productivity shocks transmit to earnings and employment in an economy with search frictions and firm commitment. We develop an equilibrium search model with worker and firm shocks and characterize the optimal contract offered by competing...
Persistent link: https://www.econbiz.de/10014090908
This paper studies the effect of mandated severance pay in a matching model featuring wage rigidity for ongoing, but not new, matches. Mandated severance pay matters only if binding real wage rigidities imply inefficient separation under employment at will. In such a case, large enough severance...
Persistent link: https://www.econbiz.de/10009668414
Fixed term employment contracts have been introduced in a number of European countries as a way to provide flexibility to economies with high employment protection levels. We introduce these contracts into the equilibrium search model in Alvarez and Veracierto (1999), a version of the Lucas and...
Persistent link: https://www.econbiz.de/10012734954
respect to the overall improvement of the German labour market and shifts in the employment structure? How could re-regulation … structure but definitely not the only one. This result suggests that with regard to the potential effects of recent re-regulation … Bundesregierung leiteten zuletzt eine Re-Regulierung ein, die auf eine Stärkung von Arbeitnehmerrechten zielt. Dies geschah vor dem …
Persistent link: https://www.econbiz.de/10010490788