Reputation concerns under at-will employment

• Main Authors: SUN, Jian, WEI, Dong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: moral hazard; job insecurity; reputation; at-will employment; Finance and Financial Management; Organizational Behavior and Theory
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7038; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8037/viewcontent/SSRN_id3424122.pdf
• Institution: Singapore Management University

We study a continuous-time model of long-run employment relationship with fixed wage and at-will firing; that is, termination of the relationship is non-contractible. Depending on his type, the worker either always works hard, or can freely choose his effort level. The firm does not know the worker’s t...