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Author: Arnab K. Basu
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
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Book Description
Fixed-term contract employment has increasingly replaced regular open-ended employment as the predominant form of employment notably in developing countries. Guided by factory-level evidence showing nuanced patterns of co-movements of regular and contract wages, we propose a two-tiered task based model with self-enforcing contracts in which firms allocate complex tasks to long term employees at incentive compatible wages, and routine tasks to fixed term employees at acceptable wages.We show that the advent of contract employment effectively lowers the cost of maintaining worker discipline, and demonstrate the conditions under which a positive change in labor demand can end up increasing the share of contract employees. We then argue that the contract employment phenomenon sheds light on two margins of hiring distortions - respectively task assignment and total employment distortions - against which the effectiveness of a suite of oft proposed labor market exibility policies should be assessed.
Author: Arnab K. Basu
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
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Book Description
Fixed-term contract employment has increasingly replaced regular open-ended employment as the predominant form of employment notably in developing countries. Guided by factory-level evidence showing nuanced patterns of co-movements of regular and contract wages, we propose a two-tiered task based model with self-enforcing contracts in which firms allocate complex tasks to long term employees at incentive compatible wages, and routine tasks to fixed term employees at acceptable wages.We show that the advent of contract employment effectively lowers the cost of maintaining worker discipline, and demonstrate the conditions under which a positive change in labor demand can end up increasing the share of contract employees. We then argue that the contract employment phenomenon sheds light on two margins of hiring distortions - respectively task assignment and total employment distortions - against which the effectiveness of a suite of oft proposed labor market exibility policies should be assessed.
Author: Zhongzheng Lin
Publisher:
ISBN:
Category : Employment (Economic theory)
Languages : en
Pages : 30
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Book Description
Author: George A. Akerlof
Publisher:
ISBN:
Category : Incentives in industry
Languages : en
Pages : 39
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Book Description
In the most widely analyzed type of efficiency wage model of involuntary unemployment, firms pay wages in excess of market clearing to give workers an incentive not to shirk. Such payments in excess of market clearing and the resultant equilibrium unemployment act as a worker discipline device. This paper concerns what is usually considered the most important theoretical criticism of such models: the so-called bonding argument. The essence of the bonding critique is that contracts whereby workers pay a bond to the firm upon taking a job (or pay an employment fee to gain employment) can eliminate involuntary unemployment. Explicit upfront bonds are only quite rarely observed. A more subtle form of the bonding critique argues that implicit bonding through upward sloping wage profiles and other deferred payment schemes can perfectly substitute for upfront bonds in providing incentives not to shirk and thereby allow the labor market to clear. This paper shows that upward sloping wage profiles do not act as a perfect substitute for explicit bonds in a natural extension of the shirking model in which workers are finite lived, the monitoring of worker behaviors on the job is costly, and firms have reputations for honesty as employers. In the absence of direct upfront bonding, optimal payment schedules will be in excess of market clearing. The reason why upward sloping wage profiles that are market clearing will not generally be the optimal labor contract is simple: delayed payment may provide sufficient incentive to prevent shirking late in the life of the contract, but in the beginning of the contract it does not prevent shirking. And it turns out in a variety of stylized cases, it is cheaper for the firm to pay a wage premium rather than to accept worker shirking early in the contract. The implications of potential worker malfeasance in the absence of explicit bonds for compensation schedules, job assignments, and firm monitoring strategies over the course of a worker's career are also analyzed
Author: Miles S. Kimball
Publisher:
ISBN:
Category : Employment (Economic theory)
Languages : en
Pages : 44
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Book Description
Efficiency wage models of the effort elicitation type have important implications for labor market dynamics. These models have a wide array of discontinuous sunspot equilibria driven by extraneous variables, in addition to well-behaved equilibria characterized by continuous, slowly adjusting patterns of employment. Many aspects of actual labor markets can be replicated by these models. For example, the longer-run movements they predict in employment allow macroeconomic evidence for a large labor supply elasticity to be reconciled with panel data evidence for a small labor supply elasticity. Many testable, but as yet untested predictions about labor market dynamics can also be generated.
Author:
Publisher: W.E. Upjohn Institute
ISBN: 0880992328
Category : Business & Economics
Languages : en
Pages : 260
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Book Description
Topics covered include theories and changes of labour markets, wage structures, job characteristics, skills and wages, pay flexibility.
Author: Yoram Weiss
Publisher: Springer
ISBN: 1349106887
Category : Social Science
Languages : en
Pages : 350
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Book Description
A collection of papers which analyzes and measures unemployment as a search activity, discusses efficiency wage models and which considers the impact of government and unions on employment and unemployment.
Author: Thomas Kruppe
Publisher: Routledge
ISBN: 113472845X
Category : Business & Economics
Languages : en
Pages : 173
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Book Description
The deregulation of labour law in the European Union was thought to be a spur to lasting growth of employment and an increase in labour market efficiency. This book reveals that the results of such policies have been far from those expected.This study provides a country by country overview of the legal regulations concerning employment protection a
Author: George A. Akerlof
Publisher:
ISBN:
Category : Deferred compensation
Languages : en
Pages : 56
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Book Description
Author: Patrick Bolton
Publisher: MIT Press
ISBN: 0262257963
Category : Business & Economics
Languages : en
Pages : 746
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Book Description
A comprehensive introduction to contract theory, emphasizing common themes and methodologies as well as applications in key areas. Despite the vast research literature on topics relating to contract theory, only a few of the field's core ideas are covered in microeconomics textbooks. This long-awaited book fills the need for a comprehensive textbook on contract theory suitable for use at the graduate and advanced undergraduate levels. It covers the areas of agency theory, information economics, and organization theory, highlighting common themes and methodologies and presenting the main ideas in an accessible way. It also presents many applications in all areas of economics, especially labor economics, industrial organization, and corporate finance. The book emphasizes applications rather than general theorems while providing self-contained, intuitive treatment of the simple models analyzed. In this way, it can also serve as a reference for researchers interested in building contract-theoretic models in applied contexts.The book covers all the major topics in contract theory taught in most graduate courses. It begins by discussing such basic ideas in incentive and information theory as screening, signaling, and moral hazard. Subsequent sections treat multilateral contracting with private information or hidden actions, covering auction theory, bilateral trade under private information, and the theory of the internal organization of firms; long-term contracts with private information or hidden actions; and incomplete contracts, the theory of ownership and control, and contracting with externalities. Each chapter ends with a guide to the relevant literature. Exercises appear in a separate chapter at the end of the book.
Author: Aleksey Manakov
Publisher: Springer Nature
ISBN: 3030963802
Category : Technology & Engineering
Languages : en
Pages : 1646
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Book Description
The book presents latest developments in the field of high-speed railway, Hyperloop transportation technologies and Maglev system. In recent years, railway transport has received a powerful impetus in its development. With the advent of the 4th Industrial revolution, the transport sector is moving towards full digitalization. TransSiberia is a platform where both the rail industry and the communications industry can meet and converge. The book contains papers prepared by experts from both sectors. This is primarily research in the field of the ICT technologies, which will be used for the future railway system. The results of studies on the design of intelligent autonomous transport systems and the operation of high-speed railways in the harsh weather conditions of Siberia are presented in detail. The book presents the state of the art in smart grid technology for railway power systems. This will contribute to decarbonization of the railway. The presented technical innovations in railway science and engineering will help scientists and engineers create a new generation of trains running on alternative fuels and capable of functioning without interruptions in any climatic conditions.
