A note on wage differentials, fixed-wages and adverse selection
Carlier, Guillaume; Gaumont, Damien (2002), A note on wage differentials, fixed-wages and adverse selection, Economics Letters, 77, 3, p. 349-356. http://dx.doi.org/10.1016/S0165-1765(02)00147-7
TypeArticle accepté pour publication ou publié
Journal nameEconomics Letters
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Abstract (EN)Using a substitution property of worker’s types (productivity and time preference), we propose an explanation for both fixed-wages and wage differentials. Fixed-wages result in bunching at the optimum. Equally productive workers with different time preference accept different wages.
Subjects / KeywordsWage differentials; Fixed-wages; Labor contracts; Adverse selection; Heterogeneous time preference
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