It was gasps all round when it was alleged that a Illinois senate seat was effectively up for sale. But as the US jobless numbers continue to soar - by 524,000 last month - Rod Blagojevich, the disgraced governor, may have been on to something. Some desperate out-of-workers trying to land a job might think about offering companies an upfront sum as an inducement. It is not so far removed from the system of unpaid internships that gift free labour to employers. That the unemployed are short of funds should not be an obstacle. Skinflint students happily take on debt in the expectation of higher post-graduate incomes.
Of course, classical labour theory says that an excess supply of workers will simply bid wages lower until the labour market clears. But the advantage of an upfront cheque is that its size - a commission on the capitalised value of expected earnings - sends a useful signal about an applicant's aptitude and commitment. Other things being equal, the amount a worker should pay will be tied to estimates of wage growth and length of tenure.
