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SM ISO690:2012 AWADA, Saleh. Labor market management. In: The contemporary issues of the socio-humanistic sciences, Ed. 6, 11-12 decembrie 2015, Chișinău. Chișinău, Republica Moldova: Universitatea Liberă Internațională din Moldova, 2015, Ediția 6, Vol.2, pp. 17-22. |
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The contemporary issues of the socio-humanistic sciences Ediția 6, Vol.2, 2015 |
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Conferința "Preocupări contemporane ale ştiinţelor socio-umane" 6, Chișinău, Moldova, 11-12 decembrie 2015 | ||||||
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Pag. 17-22 | ||||||
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Many microeconomic textbooks still treat labor markets as a special case of neoclassical trade theory. Instead of trading physical products, the employer and the worker simply exchange well defined units of labor at a price market competition determines. The literature on the theory of the firm has long recognized that this simple view is not accurate, as it neglects many important aspects of real life employment relationships (Coase 1937; Simon 1951; Williamson 1975). Most occupations involve multidimensional and complex tasks that are hard to describe in a perfectly fashioned complete contract. The problem is that when the parties conclude the contract, they cannot foresee all the relevant contingencies that may become important in the course of their relationship. On the one hand, the use of flexible work practices can result in savings on wage costs. First, work may be hired and paid for only when there is work to be done (for example, during temporary production peaks), and second, because many ‘flexible’ workers earn less than comparable tenured workers and may not be entitled to all the benefits that tenured workers tend to 18 receive from their employers (such as maternity leave and sickness benefits). On the other hand, the sort of labor market policies pursued in Britain and the USA over the 1980s and 1990s may risk being detrimental to long-run economic performance by leading to a neglect or undervaluing of assets and processes such as training and innovative activity, which are vital to long-term development and economic progress. |
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Cuvinte-cheie flexibility, wages, employers, labor market |
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