Implicit Contracts, Labour Mobility and Unemployment
Richard Arnott (),
Arthur Hosios () and
Working Papers from Queen's University, Department of Economics
Firm's inability to monitor employees search efforts results in a tradeoff between risk-bearing and incentive considerations in the design of employment-related insurance. Since the provision of insurance against firm-specific shocks adversely affects workers' incentives to search out better jobs, only partial insurance will be provided to encourage workers to stay (leave) at high (low) productivity firms: in this setting, quits and layoffs are alternative means of inducing separations at low productivity firms. This paper describes the equilibrium labour contract when search information is private, and is thereby able to provide the first unified treatment of risk-sharing contracts, interfirm mobility, worksharing, layoffs, severance pay, on-the-job and off-the-job search, quits and unemployment.
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: Implicit Contracts, Labor Mobility, and Unemployment (1988)
Working Paper: Implicit Contracts, Labor Mobility and Unemployment (1987)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:543
Access Statistics for this paper
More papers in Working Papers from Queen's University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().