Article ID Journal Published Year Pages File Type
10479855 Labour Economics 2012 15 Pages PDF
Abstract
► We derive a pair-wise efficient labor contract when workers choose to quit. ► We compare and reject the efficient contract in favor of a constant wage contract. ► The constant wage contract results in labor force participation being 9.6% too low. ► A shift to the efficient contract would improve welfare by roughly 3.5%.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Labor force participation and pair-wise efficient contracts with search and bargaining
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