المؤلفون: Ed Nosal, Peter Rupert

المصدر: Review of Economic Dynamics. 10:424-443

مصطلحات موضوعية: Consumption (economics), Market interest rate, Economics and Econometrics, Labour economics, ComputingMilieux_THECOMPUTINGPROFESSION, Amenity, media_common.quotation_subject, Wage, Affect (psychology), Compensating differential, Value (economics), Economics, Time preference, Wage growth, Job satisfaction, Wages, Employment (Economic theory), media_common

الوصف: Observing the current wage at a job may not fully reflect the value of that job. For example, a job with a low starting wage may be preferred to a high starting wage job if the growth rate of wages in the former exceeds the latter. In fact, differences in wage growth can potentially explain why a worker might want to quit a high paying job for a job with a lower initial wage. Job amenities are shown to be another important factor that not only influence the value of a job but also provide an independent rationale for why workers change jobs. The inclusion of a job amenity as part of the "value" can also generate a move from either high-paying to low-paying or low-paying to high-paying jobs as part of an optimal consumption plan over the life cycle. Both the direction of movement and the timing of a job change are shown to depend critically on the relationship between the worker's rate of time preference and the market interest rate.

URL الوصول: https://explore.openaire.eu/search/publication?articleId=doi_dedup___::75c2fbc43ce7db284ba0678ba5785f65
https://doi.org/10.1016/j.red.2006.12.004

المؤلفون: Jeffrey R. Campbell, Jonas D. M. Fisher

المصدر: Review of Economic Dynamics. 7:331-353

مصطلحات موضوعية: Job creation, Economics and Econometrics, Labour economics, Idiosyncratic Risk, Plant Life Cycle, Employment Dynamics, Adjustment Costs, 05 social sciences, Aggregate (data warehouse), jel:E00, Employment (Economic theory), Temporary employees, jel:L00, Shock (economics), jel:J00, Plant life cycle, 8. Economic growth, 0502 economics and business, Systematic risk, Economics, 050207 economics, Productivity, 050205 econometrics

الوصف: This paper studies how producers' idiosyncratic risks affect an industry's aggregate dynamics in an environment where certainty equivalence fails. In the model, producers can place workers in two types of jobs, organized and temporary. Workers are less productive in temporary jobs, but creating an organized job requires an irreversible investment of managerial resources. Increasing productivity risk raises the value of an unexercised option to create an organized job. Losing this option is one cost of immediate organized job creation, so an increase in its value induces substitution towards cheaper temporary jobs. Because they are costless to create and destroy, a producer using temporary jobs can be more flexible, responding more to both idiosyncratic and aggregate shocks. If all of an industry's producers adapt to heightened idiosyncratic risk in this way, the industry as a whole can respond more to a given aggregate shock. This insight is used to better understand the observation from the U.S. manufacturing sector that groups of plants displaying high idiosyncratic variability also have large aggregate fluctuations.

URL الوصول: https://explore.openaire.eu/search/publication?articleId=doi_dedup___::52162285dfff106f4c7143c720f66efa