Downsizing the Labor Force by Low and High Profit Firms – An Experimental Analysis
نویسندگان
چکیده
One may hope to capture the behavioral and emotional effects of downsizing the labor force in rather abstract settings as an ultimatum game (see Fischer et al. (2008)), or try to explore downsizing in its more natural principalagent scenario with a labor market background. We pursue the latter approach and test experimentally whether downsizing occurs whenever (game) theoretically predicted and whether effort reactions question its profitability. Our main findings are that downsizing seems to happen less often than predicted and that its frequency does not depend on whether, theoretically, its gains are rather large or small. Interestingly, we also find strong evidence that piece-rate offers are used in a suboptimal way. JEL classification: C72, C91, D21, J01
منابع مشابه
Investigating the Impact of Growth of Petroleum Products Consumption on Economic Development with a Systematic Dynamics Approach in Developing Countries
I n addition to labor force and capital, energy plays a significant role in the production of commodities and services. Energy is the driving force of production activities. Therefore, it is an essential ingredient of growth and development. Results obtained from this paper show that the growth of oil products consumption has a positive effect on economic development via two channels: Firstly,...
متن کاملCost Benefit Analysis of Higher Education by Educated Women in Iran: The Tale of Self Fulfilling Prophecy and Low Labor Force Participation
متن کامل
Machinability Improvement of 17-4PH Stainless Steel by Cryogenic Cooling
17-4PH stainless steel is a martensitic precipitation hardening stainless steel that provides an outstanding combination of high strength, good corrosion resistance, good mechanical properties, good toughness in both base metal and welds, and short time, low-temperature heat treatments that minimize warpage and scaling. This valuable alloy is widely used in the aerospace, nuclear, chemical, pet...
متن کاملMachinability Improvement of 17-4PH Stainless Steel by Cryogenic Cooling
17-4PH stainless steel is a martensitic precipitation hardening stainless steel that provides an outstanding combination of high strength, good corrosion resistance, good mechanical properties, good toughness in both base metal and welds, and short time, low-temperature heat treatments that minimize warpage and scaling. This valuable alloy is widely used in the aerospace, nuclear, chemical, pet...
متن کاملIs the Economic Growth Regime in Iran Wage-led or Profit-led?
This study investigates the relationship between factor income distribution and aggregate demand in the context of the Post-Keynesian school, using data from Iran over the period 1346-1393. To this end, profit share and GDP growth are used as proxies for factor income distribution and demand growth, respectively. The results of the cointegration analysis based on the ARDL approach show that pro...
متن کامل