Shirking models were particularly influential. Carl Shapiro and Joseph Stiglitz 's 1984 paper Equilibrium Unemployment as a Worker Discipline Device created a model where employees tend to avoid work .
Firms can monitor worker effort and threaten slacking employees with unemployment .
Shirking models were particularly influential. Carl Shapiro and Joseph Stiglitz 's 1984 paper Equilibrium Unemployment as a Worker Discipline Device created a model where employees tend to avoid work unless firms can monitor worker effort and threaten slacking employees with unemployment .