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- W3122039231 abstract "A wage is pair-wise inefficient in a standard search model when workers endogenously separate from employment. We derive a pair-wise efficient employment contract that involves workers paying a hiring fee (or bond) upon the formation of a match. We estimate the constant wage and pair-wise efficient contract assuming the hiring fee is unobservable, and find evidence to reject the pair-wise efficient contract in favor of the constant wage rule. A counterfactual experiment reveals the current level of labor force participation to be 9.6% below the efficient level, and a structural shift to the pair-wise efficient contract improves welfare by roughly 3.5%." @default.
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- W3122039231 date "2012-01-20" @default.
- W3122039231 modified "2023-09-27" @default.
- W3122039231 title "Labor Force Participation and Pair-wise Efficient Contracts with Search and Bargaining" @default.
- W3122039231 hasPublicationYear "2012" @default.
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