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A non-perpetual shirking model

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  • Chen, Yu-Fu
  • Zoega, Gylfi

Abstract

We provide a finite-horizon counterpart to the Shapiro and Stiglitz model of unemployment to show how workers’ effort falls as they approach the end of an employment spell. The model provides a reason for wages rising more rapidly than productivity.

Suggested Citation

  • Chen, Yu-Fu & Zoega, Gylfi, 2015. "A non-perpetual shirking model," Economics Letters, Elsevier, vol. 134(C), pages 98-101.
    • Handle: RePEc:eee:ecolet:v:134:y:2015:i:c:p:98-101
    DOI: 10.1016/j.econlet.2015.06.021
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    References listed on IDEAS

    as
    1. Tien, Charles, 2001. "Representation, Voluntary Retirement, and Shirking in the Last Term," Public Choice, Springer, vol. 106(1-2), pages 117-130, January.
    2. Benoit Dostie, 2011. "Wages, Productivity and Aging," De Economist, Springer, vol. 159(2), pages 139-158, June.
    3. Thierry Lallemand & François Rycx, 2009. "Are Older Workers Harmful for Firm Productivity?," De Economist, Springer, vol. 157(3), pages 273-292, September.
    4. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-620, September.
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    6. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
    7. Anthony C. Krautmann & John L. Solow, 2009. "The Dynamics of Performance Over the Duration of Major League Baseball Long-Term Contracts," Journal of Sports Economics, , vol. 10(1), pages 6-22, February.
    8. David N. Figlio, 1995. "The Effect of Retirement On Political Shirking: Evidence From Congressional Voting," Public Finance Review, , vol. 23(2), pages 226-241, April.
    9. Jason DeBacker, 2012. "Political parties and political shirking," Public Choice, Springer, vol. 150(3), pages 651-670, March.
    10. Parker, Glenn R & Powers, Stephen C, 2002. "Searching for Symptoms of Political Shirking: Congressional Foreign Travel," Public Choice, Springer, vol. 110(1-2), pages 173-191, January.
    11. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wages; Shirking; Finite horizons; Retirement;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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