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Insurance-markets Equilibrium with a Non-convex Labor Supply decision, Unobservable Effort, and Incentive ("Fair") Wages

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  • Vasilev, Aleksandar

Abstract

The purpose of this note is to describe the lottery- and insurance-market equilibrium in an economy with non-convex labor supply decision, unobservable effort, and incentive ("fair") wages. The presence of indivisible labor creates a market incompleteness, which requires that an insurance market for employment be put in operation to "complete" the market.

Suggested Citation

  • Vasilev, Aleksandar, 2018. "Insurance-markets Equilibrium with a Non-convex Labor Supply decision, Unobservable Effort, and Incentive ("Fair") Wages," EconStor Preprints 183615, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:183615
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    References listed on IDEAS

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    1. Aleksandar VASILEV, 2018. "Aggregation With A Non-Convex Labor Supply Decision, Unobservable Effort, And Incentive (“Fair”) Wages," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 9(2), pages 144-147.
    2. Jean-Pierre Danthine & Andre Kurmann, 2004. "Fair Wages in a New Keynesian Model of the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(1), pages 107-142, January.
    3. Aleksandar VASILEV, 2018. "Aggregation With A Non-Convex Labour Supply Decision, Unobservable Effort, And Reciprocity (“Gift Exchange”) In Labor Relations," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 9(1), pages 45-48.
    4. Vasilev, Aleksandar, 2017. "A Real-Business-Cycle model with reciprocity in labor relations and fiscal policy: the case of Bulgaria," EconStor Preprints 156164, ZBW - Leibniz Information Centre for Economics.
    5. Hansen, Gary D., 1985. "Indivisible labor and the business cycle," Journal of Monetary Economics, Elsevier, vol. 16(3), pages 309-327, November.
    6. Rogerson, Richard, 1988. "Indivisible labor, lotteries and equilibrium," Journal of Monetary Economics, Elsevier, vol. 21(1), pages 3-16, January.
    7. Vasilev, Aleksandar, 2019. "Insurance-markets Equilibrium with a Non-convex Labor Supply decision, Unobservable Effort, and Incentive ("Fair") Wages," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 5(2), pages 1-9.
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    Citations

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    Cited by:

    1. Vasilev Aleksandar, 2020. "Are “fair” wages quantitatively important for business cycle fluctuations in Bulgaria?," Review of Economic Perspectives, Sciendo, vol. 20(1), pages 91-105, March.
    2. Vasilev, Aleksandar, 2019. "Insurance-markets Equilibrium with a Non-convex Labor Supply decision, Unobservable Effort, and Incentive ("Fair") Wages," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 5(2), pages 1-9.

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    More about this item

    Keywords

    Indivisible labor; Lotteries; Insurance; Unobservable effort; fair wages;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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