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Inflation Uncertainty and Contract Duration

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Vroman, Susan B

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Abstract

This study examines the determinants of the duration of U.S. union contracts using a longitudinal contract data base. Support is found for the hypotheses that (1) inflation uncertainty reduces contract length and that (2) greater contracting costs, as proxied by a strike variable and by previous duration, increase contract length. In addition, contract duration is found to be greater for indexed contracts, to be procyclical, and to have increased over the sample period. Copyright 1989 by MIT Press.

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Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 71 (1989)
Issue (Month): 4 (November)
Pages: 677-81
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Handle: RePEc:tpr:restat:v:71:y:1989:i:4:p:677-81

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  1. Robert Rich & Joseph Tracy, 2000. "Uncertainty and Labor Contract Durations," NBER Working Papers 7731, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Louis Christofides & Amy Chen Peng, 2006. "Major Provisions of Labour Contracts and their Theoretical Coherence," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Peter Cramton & Hamid Mehran & Joseph Tracy, 2008. "ESOP Fables: The Impact of Employee Stock Ownership Plans on Labor Disputes," Papers of Peter Cramton 98wpesop, University of Maryland, Department of Economics - Peter Cramton, revised Sep 2008. [Downloadable!]
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  4. Tommaso Nannicini, 2004. "Temporary Workers: How Temporary Are They?," Economics Working Papers ECO2004/23, European University Institute. [Downloadable!]
  5. Torben M. Andersen, . "Persistency in Sticky Price Models," Economics Working Papers 1997-19, School of Economics and Management, University of Aarhus. [Downloadable!]
  6. Danziger, Leif & Neuman, Shoshana, 2003. "Delays in Renewal of Labor Contracts: Theory and Evidence," IZA Discussion Papers 709, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Mohamed Ali Ben Halima, 2005. "The determinants for labour contract length A French micro-econometric study," Working Papers 0503, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure. [Downloadable!]
  8. Leif Danziger, 2006. "Extension of Labor Contracts and Optimal Backpay," IZA Discussion Papers 2366, Institute for the Study of Labor (IZA). [Downloadable!]
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