The Determinants of Shirking: Analysis and Evidence on Job Loser Unemployment
The unemployment rate captures the search behavior of job losers, as well as new entrants or reentrants to the labor force. The behavior of these unemployed groups can display significant differences. This paper extends the Shapiro-Stiglitz model to include an analysis of equilibrium job loss from shirking and empirically tests for the relationship between labor market conditions and job loss. This process identifies empirical differences between job losers and other unemployed members of the labor force. The equilibrium level of job loser unemployment is shown to fluctuate given the degree to which firms monitor shirking over the business cycle. While this extension does not change the core results of the efficiency wage model, it does provide some additional insights. For example, in equilibrium, everyone shirks some. Consequently, on-the-job leisure is a form of employee benefit that is regulated by the extent to which the firm monitors, reprimands, and fires shirkers. Across the business cycle the firm's shadow price of turnover changes, and hence the equilibrium level of job losers.
Volume (Year): 31 (2005)
Issue (Month): 1 (Winter)
|Contact details of provider:|| Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA|
Phone: (201) 684-7346
Web page: https://www.quinnipiac.edu/eea/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas Hyclak & Geraint Johnes, 1992. "Wage Flexibility and Unemployment Dynamics in Regional Labor Markets," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wfud, November.
- Bruce D. Meyer, 1988.
"Unemployment Insurance And Unemployment Spells,"
NBER Working Papers
2546, National Bureau of Economic Research, Inc.
- Barry T. Hirsch & David A. Macpherson, 1993. "Union Membership and Coverage Files from the Current Population Surveys: Note," ILR Review, Cornell University, ILR School, vol. 46(3), pages 574-578, April.
- Dye, Ronald A & Antle, Rick, 1984. "Self-Selection via Fringe Benefits," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 388-411, July.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
- Richard B. Freeman & Casey Ichniowski, 1988. "When Public Sector Workers Unionize," NBER Books, National Bureau of Economic Research, Inc, number free88-1.
- Lou Pantuosco & Darrell Parker & Gary Stone, 2001. "The Effect of Unions on Labor Markets and Economic Growth: An Analysis of State Data," Journal of Labor Research, Transaction Publishers, vol. 22(1), pages 195-205, January.
- Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, November.
- Barry T. Hirsch & David A. MacPherson & J. Michael Dumond, 1997. "Workers#x0027; Compensation Recipiency in Union and Nonunion Workplaces," ILR Review, Cornell University, ILR School, vol. 50(2), pages 213-236, January.
- Kim, Se-Jik & Kim, Yong Jin, 2000. "Growth gains from trade and education," Journal of International Economics, Elsevier, vol. 50(2), pages 519-545, April.
- Lawrence F. Katz, 1986.
"Efficiency Wage Theories: A Partial Evaluation,"
NBER Working Papers
1906, National Bureau of Economic Research, Inc.
- Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
- Pantuosco, Lou & Parker, Darrell, 1998. "Sources of Prevailing Differences in Unemployment Rates For Selected Regional Pairs," The Review of Regional Studies, Southern Regional Science Association, vol. 28(2), pages 35-46, Fall.
When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:31:y:2005:i:1:p:7-21. See general 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: (Victor Matheson, College of the Holy Cross)
If references are entirely missing, you can add them using this form.