Self-respecting worker in the gig economy: A dynamic principal-agent model

@inproceedings{Bihary2021SelfrespectingWI,
  title={Self-respecting worker in the gig economy: A dynamic principal-agent model},
  author={Zsolt Bihary and P{\'e}ter Cs{\'o}ka and P{\'e}ter Ker{\'e}nyi and Alexander Szimayer},
  year={2021}
}
We introduce a dynamic principal-agent model to understand the nature of contracts between an employer and an independent gig worker. We model the worker’s self-respect with an endogenous participation constraint; he accepts a job offer if and only if its utility is at least as large as his reference value, which is based on the average of previously realized wages. If the dynamically changing reference value capturing the worker’s demand is too high, then no contract is struck until the… Expand

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