Title of article
Worker replacement
Author/Authors
Guido Menzio، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2010
Pages
14
From page
623
To page
636
Abstract
Consideralabormarketinwhichfirmswanttoinsureexistingemployeesagainst
income fluctuationsand,simultaneously,wanttorecruitnewemployeestofillvacant
jobs. Firmscancommittoawagepolicy,i.e.apolicythatspecifiesthewagepaidtotheir
employeesasafunctionoftenure,productivityandotherobservables.However,firms
cannotcommittoemployworkers.Inthisenvironment,theoptimalwagepolicy
prescribesnotonlyarigidwageforseniorworkers,butalsoadownwardrigidwagefor
new hires.Thedownwardrigidityinthehiringwagemagnifiestheresponseof
unemploymenttonegativeshocks
Journal title
Journal of Monetary Economics
Serial Year
2010
Journal title
Journal of Monetary Economics
Record number
846418
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