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Will markets provide humane jobs? A hypothesis

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  • Nekoei, Arash

Abstract

Most of the key amenities of our today jobs did not emerge in private contracts; instead, they appeared in collective agreements and regulations. I argue that understanding this observation can guide the provision of future amenities. I show that markets underprovide an amenity if workers who value it more have a lower average unobserved productivity. Universal mandate of such amenities improves social welfare when taste-productivity correlation is high. Policies that leverage heterogeneity in the taste-productivity correlation by observable characteristics, e.g., quota and tagging, dominate mandate in the presence of a mild adverse selection.

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  • Nekoei, Arash, 2022. "Will markets provide humane jobs? A hypothesis," CEPR Discussion Papers 16926, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16926
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