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empirical evidence for shirking model
Capelli, Chauvin(1991), test that higher wages cause less shirking, find by analysing large firms that higher wages cause less disciplinary issues
why wage is not at market clearing level
Glaeser, Mare (2001), higher wages for same work in metropolitant areas, selection turnover and discipline
effect of institutions on unemployment
Nickell(1997), long and generous benefits, high unionization without coordination, high taxes, poor education at the bottom all cause high unemployemnt; employment protection, short but high benefits do not
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