DYNAMIC CONTRACTS WITH WORKER MOBILITY VIA DIRECTED ON-THE-JOB SEARCH

• 成果类型: Article
• 署名作者: Tsuyuhara, Kunio
• 署名单位: University of Calgary
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12202
• 发表日期: 2016
• 页码: 1405-1424
• 关键词: wage-tenure contracts; equilibrium; PRODUCTIVITY; incentives; EFFICIENCY; cycle

摘要

This article proposes a model with dynamic incentive contracts and on-the-job search in a frictional labor market. The optimal long-term contract exhibits an increasing wage-tenure profile. With increasing wages, worker effort also increases with tenure. These two features imply that the probabilities of both voluntary and involuntary job separation decrease with both job tenure and the duration of employment. Given these results, workers experience differing labor market transitionsbetween employment, unemployment, and across different employersand the equilibrium generates endogenous heterogeneity among ex ante homogeneous workers.