IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/19859.html
   My bibliography  Save this paper

Contrat de travail et précarisation : une modélisation de l’information asymétrique d’une situation atypique, cas des pays pauvres et en développement
[Employment contract and insecurity jobs: asymmetric information modelling of atypical situation, case of poor and less developed countries]

Author

Listed:
  • El Bouhadi, Abdelhamid

Abstract

Our aim in this paper is dedicated to study the relations of recruiting among the employee and the employer in a frame characterized by the insecurity conditions of job and large scale of unemployment. The recruiting relationship that we will study is atypical as far as the offered salary is not a fixed minimum wage. The hiring contract between the employer and the employee in the developing labour markets is made with different conditions regarding to others, mainly in the developed countries. In these countries, the hiring signature of contract is linked to some preconditions like as the regularization statutory of hiring, the minimum of job security, wage and working rights in the case of unfair dismissal. In these conditions and under high level of costs which are engaged by the employer in order to research the skilled work even to pay the various payroll charges, the Principal has been faced with asymmetric information problem concerning the adverse selection linked to the nature of Agent type (informative characteristic of the employee): is it the check or the bad Agent type? In order to reduce this informative asymmetry, the Principal offers the various recruiting contracts with various pecuniary motivations. The mechanism of game can be a direct mechanism designer where the optimal strategy of the Agent is to announce its true type (it’s a situation where is benefit for the Agent to make sincere announcements) in order to maximize his expected utility. This standard modelling of Principal/Agent theory is not adapted with the labour markets situation in the case of poor and less developed countries. In the case of labour markets where the hiring conditions are much unsecured, we note that the Incentive Compatibility and the Individual Rationality of Agent do not exist. In fact, we are facing a problem in which there is a sort of indecision of reserved salary which allows the Agent to know if it is relatively well paid or not. Our aim in this article is to try to find an adequate modelling in the case of developing labour markets situation under the frame of Principal/Agent theory.

Suggested Citation

  • El Bouhadi, Abdelhamid, 2006. "Contrat de travail et précarisation : une modélisation de l’information asymétrique d’une situation atypique, cas des pays pauvres et en développement
    [Employment contract and insecurity jobs: asym
    ," MPRA Paper 19859, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19859
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/19859/1/MPRA_paper_19859.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Champsaur, Paul & Rochet, Jean-Charles, 1989. "Multiproduct Duopolists," Econometrica, Econometric Society, vol. 57(3), pages 533-557, May.
    2. Bruno Biais & David Martimort & Jean-Charles Rochet, 2000. "Competing Mechanisms in a Common Value Environment," Econometrica, Econometric Society, vol. 68(4), pages 799-838, July.
    3. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank.
    4. B. Caillaud & R. Guesnerie & P. Rey, 1992. "Noisy Observation in Adverse Selection Models," Review of Economic Studies, Oxford University Press, vol. 59(3), pages 595-615.
    5. Melumad, Nahum D. & Reichelstein, Stefan, 1989. "Value of communication in agencies," Journal of Economic Theory, Elsevier, vol. 47(2), pages 334-368, April.
    6. Lewis, Tracy R. & Sappington, David E. M., 1989. "Countervailing incentives in agency problems," Journal of Economic Theory, Elsevier, vol. 49(2), pages 294-313, December.
    7. Bernard Mériaux, 1978. "Point de vue sur les recherches françaises en économie du travail," Revue Économique, Programme National Persée, vol. 29(1), pages 120-140.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Moroccan Labour Market; Insecure Jobs; Adverse Selection; Principal/Agent Theory; Poor and Developing Countries.;

    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:19859. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.