In most Industrial and Industrializing Countries, labor markets are characterized by employers offering packages of wage, non-wage, and working conditions to prospective workers. In return, workers offer to apply effort to tasks determined by employers. This paper attempts to examine these employer-employee contracts using a stockout avoidance model with employees providing variable labor effort.
Alpert, William and Stiver, John, "On Modeling and Controlling the Effects of Variable Labor Effort: A Theoretical Explanation of the Truck System" (2002). Economics Working Papers. 200238.