Contractual Incompleteness, Unemployment, and Labour Market Segmentation

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Standard

Contractual Incompleteness, Unemployment, and Labour Market Segmentation. / Altmann, Steffen; Falk, Armin; Grunewald, Andreas; Huffman, David.

I: Review of Economic Studies, Bind 81, Nr. 1, 01.01.2014, s. 30-56.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

Harvard

Altmann, S, Falk, A, Grunewald, A & Huffman, D 2014, 'Contractual Incompleteness, Unemployment, and Labour Market Segmentation', Review of Economic Studies, bind 81, nr. 1, s. 30-56. https://doi.org/10.1093/restud/rdt034

APA

Altmann, S., Falk, A., Grunewald, A., & Huffman, D. (2014). Contractual Incompleteness, Unemployment, and Labour Market Segmentation. Review of Economic Studies, 81(1), 30-56. https://doi.org/10.1093/restud/rdt034

Vancouver

Altmann S, Falk A, Grunewald A, Huffman D. Contractual Incompleteness, Unemployment, and Labour Market Segmentation. Review of Economic Studies. 2014 jan 1;81(1):30-56. https://doi.org/10.1093/restud/rdt034

Author

Altmann, Steffen ; Falk, Armin ; Grunewald, Andreas ; Huffman, David. / Contractual Incompleteness, Unemployment, and Labour Market Segmentation. I: Review of Economic Studies. 2014 ; Bind 81, Nr. 1. s. 30-56.

Bibtex

@article{468539834b6d4958860790854eb17c76,
title = "Contractual Incompleteness, Unemployment, and Labour Market Segmentation",
abstract = "This article provides evidence that involuntary unemployment, and the segmentation of labour markets into firms offering {"}good{"} and {"}bad{"} jobs, may both arise as a consequence of contractual incompleteness.We provide a simple model that illustrates how unemployment and market segmentation may jointly emerge as part of a market equilibrium in environments where work effort is not third-party verifiable. Using experimental labour markets that differ only in the verifiability of effort, we demonstrate empirically that contractual incompleteness can cause unemployment and segmentation. Our data are also consistent with the key channels through which the model explains the emergence of both phenomena.",
keywords = "Contractual incompleteness, Dual labour markets, Incentives, Laboratory experiment, Unemployment",
author = "Steffen Altmann and Armin Falk and Andreas Grunewald and David Huffman",
note = "JEL Classification: C91, J41, J64, M52, M55",
year = "2014",
month = "1",
day = "1",
doi = "10.1093/restud/rdt034",
language = "English",
volume = "81",
pages = "30--56",
journal = "Review of Economic Studies",
issn = "0034-6527",
publisher = "Oxford University Press",
number = "1",

}

RIS

TY - JOUR

T1 - Contractual Incompleteness, Unemployment, and Labour Market Segmentation

AU - Altmann, Steffen

AU - Falk, Armin

AU - Grunewald, Andreas

AU - Huffman, David

N1 - JEL Classification: C91, J41, J64, M52, M55

PY - 2014/1/1

Y1 - 2014/1/1

N2 - This article provides evidence that involuntary unemployment, and the segmentation of labour markets into firms offering "good" and "bad" jobs, may both arise as a consequence of contractual incompleteness.We provide a simple model that illustrates how unemployment and market segmentation may jointly emerge as part of a market equilibrium in environments where work effort is not third-party verifiable. Using experimental labour markets that differ only in the verifiability of effort, we demonstrate empirically that contractual incompleteness can cause unemployment and segmentation. Our data are also consistent with the key channels through which the model explains the emergence of both phenomena.

AB - This article provides evidence that involuntary unemployment, and the segmentation of labour markets into firms offering "good" and "bad" jobs, may both arise as a consequence of contractual incompleteness.We provide a simple model that illustrates how unemployment and market segmentation may jointly emerge as part of a market equilibrium in environments where work effort is not third-party verifiable. Using experimental labour markets that differ only in the verifiability of effort, we demonstrate empirically that contractual incompleteness can cause unemployment and segmentation. Our data are also consistent with the key channels through which the model explains the emergence of both phenomena.

KW - Contractual incompleteness

KW - Dual labour markets

KW - Incentives

KW - Laboratory experiment

KW - Unemployment

U2 - 10.1093/restud/rdt034

DO - 10.1093/restud/rdt034

M3 - Journal article

AN - SCOPUS:84893413954

VL - 81

SP - 30

EP - 56

JO - Review of Economic Studies

JF - Review of Economic Studies

SN - 0034-6527

IS - 1

ER -

ID: 126372716