Constraints on the Choice of Work Hours: Agency Versus Specific-Capital
AbstractLifetime contracts imply that at a given time, wages and value of marginal product (VMP) will diverge. The contract will specify hours as well as wages, since firms will desire to prevent workers from working more when the wage is greater than VMP and from working less when the wage is less than VMP. If hours are set efficiently, workers will face binding hours constraints. The agency model and the firm-specific capital models make opposite predictions regarding the relation between work hours constraints and job tenure. We test these predictions. Our results indicate that neither model explains the observed pattern of hours constraints.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Journal of Human Resources.
Volume (Year): 27 (1992)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://jhr.uwpress.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Martinez-Granado, Maite, 2005. "Testing labour supply and hours constraints," Labour Economics, Elsevier, vol. 12(3), pages 321-343, June.
- Li, Haizheng & Zax, Jeffrey S., 2003. "Labor supply in urban China," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 795-817, December.
- Gautam Bose & Kevin Lang, 2011.
"A Theory of Monitoring and Internal Labor Markets,"
NBER Working Papers
17623, National Bureau of Economic Research, Inc.
- Kevin Lang & Gautam Bose, 2011. "A Theory of Monitoring and Internal Labor Markets," Boston University - Department of Economics - Working Papers Series WP2011-020, Boston University - Department of Economics.
- Gautam Bose & Kevin Lang, 2011. "A Theory of Monitoring and Internal Labor Markets," Discussion Papers 2012-06, School of Economics, The University of New South Wales.
- Kessing, Sebastian G. & Konrad, Kai A., 2005.
"Union strategy and optimal income taxation,"
Discussion Papers, Research Unit: Market Processes and Governance
SP II 2005-04, Social Science Research Center Berlin (WZB).
- Usui, Emiko, 2009. "Wages, non-wage characteristics, and predominantly male jobs," Labour Economics, Elsevier, vol. 16(1), pages 52-63, January.
- KURODA Sachiko & YAMAMOTO Isamu, 2011. "Firm's demand for work hours: Evidence from multi-country and matched firm-worker data," Discussion papers 11024, Research Institute of Economy, Trade and Industry (RIETI).
- Joseph G. Altonji & Emiko Usui, 2005.
"Work Hours, Wages, and Vacation Leave,"
NBER Working Papers
11693, National Bureau of Economic Research, Inc.
- Yi-Ping Tseng & Mark Wooden, 2005. "Preferred vs Actual Working Hours in Couple Households," Melbourne Institute Working Paper Series wp2005n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.