Wages, Hours and Human Capital Over the Life Cycle
AbstractWe investigate wage-hours contracts within a four-period rent sharing model that incorporates asymmetric information. Distinctions aremade among (a) an investment period, (b) a period in which the partiesmay separate (quits or layoffs) or continue rent accumulation and sharing, (c) a post investment period and, (d) retirement.We establish that increases in both wage rates and hours of work in the post-investment period serve to minimise sub-optimal separations and, moreover that both wage and hours schedules are concave. Testing is based on 13 waves of British Household Panel Survey from 1991 to 2003.
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Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 228 (2008)
Issue (Month): 5+6 (December)
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Wage-hours contracts; asymmetric information; four period model;
Other versions of this item:
- Hart, Robert A. & Ma, Yue, 2000. "Wages, Hours and Human Capital over the Live Cycle," IZA Discussion Papers 139, Institute for the Study of Labor (IZA).
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
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