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

Ronnie Schoeb and David Wildasin

Labor and Demography from University Library of Munich, Germany

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)
Date: 2001-12-10
New Economics Papers: this item is included in nep-mac
Note: Type of Document - ; prepared on TeX; figures: request from author
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Related works:
Journal Article: Economic integration and labor market institutions: Worker mobility, earnings risk, and contract structure (2007)
Working Paper: Economic Integration and Labor Market Institutions: Worker Mobility, Earnings Risk, and Contract Structure (2003)
Working Paper: Economic Integration and Labor Market Institutions; Worker Mobility, Earnings Risk, and Contract Structure (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpla:0112002

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