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- Title
A Theoretical Analysis of Exploitative Enterprise.
- Authors
Hideaki Sanada; Kei Murata
- Abstract
Recently, one of the most serious problems in Japanese society is that exploitative enterprises typically hire young employees and then force them to work large amounts of overtime without extra pay. The purpose of this paper is to analyze the interrelation between employers and employees by a principal-agent model, mainly based on Mortensen and Pissarides (1994) and Burdett and Mortensen (1998). Mortensen and Pissarides (1994) analyze how exogenous macro shocks related to productivity affect employment. Burdett and Mortensen (1998) analyze the relation between salary and hiring (the separation ratio) and assume that salary variability exists for the same task and productivity level when individuals search for jobs. However, they do not analyze the effort of employers or the process of job assignments. In this paper, we introduce the effort of employers to assign appropriate jobs and try to embody the problem of exploitative enterprises by a simple theoretical model. Moreover, we consider the effect of policy to expose and manage exploitative enterprises.
- Subjects
YOUNG workers; JOB hunting; BUSINESS enterprises; INDUSTRIAL relations; OVERTIME pay
- Publication
Global Business & Economics Anthology, 2022, Vol 1, p1
- ISSN
1553-1392
- Publication type
Article
- DOI
10.47341/GBEA.20127