@TechReport{iza:izadps:dp4363,
            	author={Chau, Nancy H.},
            	title={Sweatshop Equilibrium},
            	year={2009},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={4363},
            	url={https://www.iza.org/publications/dp4363},
	abstract={This paper presents a capability-augmented model of on the job search, in which sweatshop conditions stifle the capability of the working poor to search for a job while on the job. The augmented setting unveils a sweatshop equilibrium in an otherwise archetypal Burdett-Mortensen economy, and reconciles a number of oft noted yet perplexing features of sweatshop economies. We demonstrate existence of multiple rational expectation equilibria, graduation pathways out of sweatshops in complete absence of enforcement, and country-specific efficiency and distributional responses to competitive forces and social safety nets depending precisely on whether graduation criteria are met.},
	keywords={capability deficits;on the job search;sweatshop equilibrium},
            }