| Popis: |
This paper extends the model of enterprise restructuring in transitional economies developed by Aghion, Blanchard and Burgess in a way that generalises and clarifies the problem worker opposition to it. Restructuring that causes an initial reduction in jobs followed by a possible subsequent increase may be resisted by workers, even where it is socially optimal. This ‘undue’ resistance arises not because workers do not value the new jobs that may be created, but rather because they do not value them sufficiently. Worker resistance is thereby shown to depend on the general level of unemployment, with implications for the pace of restructuring. |
Full Text from ScienceDirect