Arbeitspapier

Sweatshop equilibrium

This paper presents a capability-augmented model of on the job search, in which sweatshop conditions stifle the capability of the working poor to search for a job while on the job. The augmented setting unveils a sweatshop equilibrium in an otherwise archetypal Burdett-Mortensen economy, and reconciles a number of oft noted yet perplexing features of sweatshop economies. We demonstrate existence of multiple rational expectation equilibria, graduation pathways out of sweatshops in complete absence of enforcement, and country-specific efficiency and distributional responses to competitive forces and social safety nets depending precisely on whether graduation criteria are met.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 4363

Klassifikation
Wirtschaft
Unemployment: Models, Duration, Incidence, and Job Search
Labor Standards: Public Policy
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Thema
Sweatshop equilibrium
on the job search
capability deficits
Arbeitsuche
Arbeitsmobilität
Arbeitsbedingungen
Niedriglohn
Arbeitsmarkttheorie
Theorie

Ereignis
Geistige Schöpfung
(wer)
Chau, Nancy H.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2009

Handle
URN
urn:nbn:de:101:1-2009092835
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Chau, Nancy H.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2009

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