Robust predistributive regulation in labour markets
Alexis presented his recent project "Robust regulation of labour contracts", joint with Théo Durandard (UIUC), at the theory seminar at UIUC. This paper studies the problem of a regulator, aiming to improve efficiency and protect workers, who can decide what contracts a firm can offer to a worker. The model of the firm-worker interaction is a standard principal-agent model with moral hazard. In that setting, the regret-minimizing regulation consists of a linear minimum wage. The regulator allows the firm to offer any contract that is pointwise greater than a linear contract. Very good reception from the audience and good feedback from Dan Bernhardt and Stefan Krasa.
20/Nov/2024
University of Illinois, Urbana Champaign