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Outside Options and Worker Motivation
Outside Options and Worker Motivation
Outside Options and Worker Motivation
Outside Options and Worker Motivation
Outside Options and Worker Motivation
4Apr
Seminar Calendar, Management and Strategy

Outside Options and Worker Motivation

4 April, 2023 | 2:30p.m.-4:00p.m.
KK 910, K. K. Leung Building, HKU
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SPEAKER

Dr. Matthias Fahn
Associate Professor
An affiliate of the CESifo Network
Johannes Kepler University Linz

ABSTRACT

We study the relationship between outside options and workers’ incentives to exert effort. We first set up a relational contracting model where effort is constrained by the future surplus of an employment relationship. To test the predictions from this model, we evaluate changes in outside options arising from age and experience cutoffs in the Austrian unemployment insurance (UI) system. Results indicate that a 9-week UI benefit extension increasesworker absenteeism at the intensive margin by 0.5 days per half-year, on average. Consistent with our model predicting that these effort reductions are more pronounced if the perceived relationship value is small, we find that our effects are stronger for workers with higher potential cost of unemployment, for older workers, in declining rather than in growing firms, in low-wage firms, and for women who have children.

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7Jul-8Jul
Faculty Level | Event
214th Congregation (Summer Congregation 2025)
Grand Hall, Centennial Campus, HKU
Semiparametric Identification of the Discount Factor and Payoff Function in Dynamic Discrete Choice Models
Semiparametric Identification of the Discount Factor and Payoff Function in Dynamic Discrete Choice Models
Semiparametric Identification of the Discount Factor and Payoff Function in Dynamic Discrete Choice Models
Semiparametric Identification of the Discount Factor and Payoff Function in Dynamic Discrete Choice Models
Semiparametric Identification of the Discount Factor and Payoff Function in Dynamic Discrete Choice Models
18Jun
Economics | Seminar
Semiparametric Identification of the Discount Factor and Payoff Function in Dynamic Discrete Choice Models
18 June 2025 | 2:15 PM - 3:30 PM
KK 910 K. K. Leung Building, HKU
Prof. Katsumi Shimotsu
Outside Options and Worker Motivation
About Speaker
Dr. Matthias Fahn

Associate Professor | An affiliate of the CESifo Network | Johannes Kepler University Linz

Outside Options and Worker Motivation
4 April, 20232:30p.m.-4:00p.m.
KK 910, K. K. Leung Building, HKU
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