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Why Do Firms Offer ‘Employment Protection’

Datos Bibliográficos

ID9720792
AutoresChristopher A Pissarides (0000-0002-0695-058X, London School of Economics and Political Science, autor de correspondencia)
Año2010
Volumen77
Número308
Páginas613-636
Fecha de publicación2010-10-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2010.00861.x
OpenAlexW1513414505
IdiomaEN
Citas recibidas3
Referencias citadas28

This paper derives optimal employment contracts when workers are risk‐averse and there are employment and unemployment risks. Without income insurance, consumption rises during employment and falls during unemployment. Optimal employment contracts offer severance compensation and sometimes give notice before dismissal. Severance compensation smooths consumption during employment, and dismissal delays insure partially against the unemployment risk because of moral hazard. During the delay, consumption falls to give incentives to the worker to search for another job. No dismissal delays are optimal if exogenous unemployment compensation is sufficiently generous

Compensation (psychology) · Consumption (sociology) · Dismissal · Economics · Incentive · Labour economics · Microeconomics · Moral hazard · Notice · Severance · Unemployment · Employment and Welfare Studies · Labor market dynamics and wage inequality · Labor Movements and Unions · Law

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Obras citantes distintas3
Citas por año0,27
Intervalo de citas2015 - 2022 (8)
Velocidad de citaciónhistorical
Altamente citadoNo
Tipos de citaNeutras: 2
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