Job security, stability, and production efficiency

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Job security, stability, and production efficiency

We study a 2-sided matching market with a set of heterogeneous firms and workers in an environment where jobs are secured by regulation. Without job security Kelso and Crawford have shown that stable outcomes and efficiency prevail when all workers are (weak) gross substitutes to each firm, in the sense that increases in other workers’ salaries can never cause a firm to withdraw an offer from a...

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▪ In most European countries, there is some evidence that jobs became, and to an even greater extent were perceived to have become, increasingly insecure in the 1990s. In Switzerland, where unemployment has long been far lower than the European average, unemployment increased in the same period. Yet in general, job stability has remained remarkably constant in the past decade, and instability f...

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ژورنال

عنوان ژورنال: Theoretical Economics

سال: 2017

ISSN: 1933-6837

DOI: 10.3982/te2016