Journal of Post-Keynesian Economics
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It is commonly believed that firms prefer layoffs to worksharing, in part, because layoffs economize on fringe benefit costs. We find that when labor markets are characterized by optimal implicit contracts, layoffs will never occur in equilibrium, regardless of the level of fringe benefits.
Jehle, Geoffrey A. and Lieberman, Marc O., "Do fringe benefits cause layoffs?" (1990). Faculty Research and Reports. 20.