Wage Contracts When Output Grows Stochastically: The Roles of Mobility Costs and Capital Market Imperfections

摘要: The paper considers an industry in which individual output follows a stochastic growth process with cumulative effect. It analyzes the roles of labor mobility and capital market conditions determination wage contracts. Positive costs are shown to be necessary for provision employment insurance when workers have no access market. When is provided, wages grow less than average productivity. If perfect, will provided even absence mobility. In this case, faster