Abstract

This paper formalizes the use of flexible labour contracts in an efficiency wage framework, and derives market dualism as an endogenous outcome. By allowing temporary contracts to be either renewed or converted into permanent contracts, we obtain new theoretical insights into the market equilibrium. The conversion rate is itself an incentive device that acts as a substitute for the wage, and firms pay a wage differential in favour of permanent workers. The model also predicts that even if firms hire exclusively under flexible contracts, dualism arises as a feature internal to each firm and, consequently, as a market property.

Autore Pugliese

• Di Cintio Marco , Grassi Emanuele

Tutti gli autori

• Di Cintio M. , Grassi E.

Titolo volume/Rivista

ECONOMICA

Anno di pubblicazione

2015

ISSN

0013-0427

ISBN

Non Disponibile

Numero di citazioni Wos

2

Ultimo Aggiornamento Citazioni

25/04/2018

Numero di citazioni Scopus

2

Ultimo Aggiornamento Citazioni

24/04/2018

Settori ERC

Non Disponibile

Codici ASJC

Non Disponibile