Economic Integration and Labor Market Institutions: Worker Mobility, Earnings Risk, and Contract Structure

Ronnie Schoeb () and David Wildasin ()

Labor and Demography from EconWPA

Abstract: This paper investigates the effects of labor market integration, in the form of worker mobility, in a model with long-term labor contracts that lead to wage rigidities and unemployment. Increased mobility leads to more flexible labor market institutions in which firms can more easily vary the level of employment in response to fluctuations in demand. Economic integration is potentially Pareto-improving but, in the absence of a system of compensation, workers are harmed by greater labor mobility while the owners of firms benefit from higher profits.

Keywords: labor; mobility; economic; integration; unemployment; implicit; contracts (search for similar items in EconPapers)
JEL-codes: J (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2001-12-10
Note: Type of Document - ; prepared on TeX; figures: request from author
View list of references

Downloads: (external link)
http://129.3.20.41/eps/lab/papers/0112/0112002.pdf (application/pdf)

Related works:
Working Paper: Economic Integration and Labor Market Institutions; Worker Mobility, Earnings Risk, and Contract Structure (1998)
Working Paper: Economic Integration and Labor Market Institutions: Worker Mobility, Earnings Risk, and Contract Structure (2003)
Journal Article: Economic integration and labor market institutions: Worker mobility, earnings risk, and contract structure (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpla:0112002

Access Statistics for this paper

More papers in Labor and Demography from EconWPA
Series data maintained by EconWPA ().