Implicit Contracts, Labour Mobility and Unemployment
AbstractFirm'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.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 543.
Date of creation: 1983
Date of revision:
Other versions of this item:
- Arnott, Richard J & Hosios, Arthur J & Stiglitz, Joseph E, 1988. "Implicit Contracts, Labor Mobility, and Unemployment," American Economic Review, American Economic Association, vol. 78(5), pages 1046-66, December.
- Richard J. Arnott & Arthur Hosios & Joseph Stiglitz, 1987. "Implicit Contracts, Labor Mobility and Unemployment," NBER Working Papers 2316, National Bureau of Economic Research, Inc.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Babcock).
If references are entirely missing, you can add them using this form.