Exploitation Cycles: Eco-Evolutionary Dynamics in Labor Markets with Predatory Employers

Maximilian L. Schmitt and Hannes Rusch
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Maximilian L. Schmitt: RS: GSBE other - not theme-related research, Microeconomics & Public Economics
Hannes Rusch: Microeconomics & Public Economics, RS: GSBE other - not theme-related research

No 11, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)

Abstract: Exploitative employers damage the very labor force on which they depend. Accordingly, this paper models exploitation and labor-force quality as a coupled dynamical system: exploiters spread when high-quality labor makes extraction profitable, but their success degrades the labor environment that sustains those profits. We show that this coupling generates persistent cycles rather than convergence toastable level of exploitation. Our policy extension shows that responsive enforcement can dampen these cycles, induce convergence, and improve welfare. We contribute by elucidating exploitation dynamics and demonstrating how eco-evolutionary methods can be applied to study labor markets on which employers compete with exploiters.

Keywords: exploitation; labor-force quality; persistent cycles (search for similar items in EconPapers)
JEL-codes: C73 J21 J47 (search for similar items in EconPapers)
Date: 2026-10-13
New Economics Papers: this item is included in nep-evo and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2026011

DOI: 10.26481/umagsb.2026011

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