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Edward Van Wesep

Institution

University of Colorado Boulder

PhD Year

2007

Phone

919-360-9689

edward.vanwesep@colorado.edu

FTG Membership

Member

Website

https://sites.google.com/site/edvanwesep/home

Featured Work

Dec 17, 2018

Edward Van Wesep | Working Paper No. 00048-00

Compensation in High Finance: A Theory of Periodic Labor Markets and Guaranteed Bonuses

We present a general equilibrium model of labor market ows that features a periodic equilibrium in which turnover is high in some periods and low in others. If a firm fi nds itself in a periodic equilibrium, it is optimal to time compensation in the form of low wages and a large bonus delivered just prior to periods with deep labor markets. This ensures that...