Unemployment and work sharing in an efficiency wage model
This paper accounts for work sharing and unemployment in an efficiency wage model. The Solow condition holds when working hours are exogenous. Under the assumption of endogeneity and using general forms for the effort and cost functions, we prove that work sharing may have a reducing impact on unemployment.
Volume (Year): 10 (2004)
Issue (Month): 3 ()
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- Mohamed Jellal & Francois-Charles Wolff, 2003.
"Dual Labor Markets And Strategic Efficiency Wage,"
International Economic Journal,
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- Jellal, Mohamed & Zenou, Yves, 2000.
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38513, University Library of Munich, Germany.
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- Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
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Oxford University Press, number 9780199279173, July.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, July.
- Jellal, Mohamed & Zenou, Yves, 1999. "Efficiency wages and the quality of job matching," Journal of Economic Behavior & Organization, Elsevier, vol. 39(2), pages 201-217, June.
- Faria, Joao Ricardo, 2000. "Supervision and effort in an intertemporal efficiency wage model: the role of the Solow condition," Economics Letters, Elsevier, vol. 67(1), pages 93-98, April.
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