Pinheiro, Roberto; Visschers, Ludo - In: Journal of Economic Theory 157 (2015) C, pp. 397-424
lack of compensating differentials for unemployment risk can arise in equilibrium when all workers are identical and firms … differ only in job security (i.e. the probability that the worker is not sent into unemployment). In a setting where workers … tail of the distribution of firm-level unemployment risk. Unemployment becomes persistent for low-wage and unemployed …