We analyze the impact of labor demand and labor market regulations on the corporate structure of firms. We find that higher wages are associated with lower monitoring, irrespective of whether these high wages are caused by labor market regulatio ns, unions or higher labor demand. These comparative static results are in line with the broad trends in the data.
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Paper provided by Massachusetts Institute of Technology (MIT), Department of Economics in its series Working papers with number
97-8.
Length: 38 pages Date of creation: 1997 Date of revision: Handle: RePEc:mit:worpap:97-8
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Find related papers by JEL classification: J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
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Anthony M. Marino & John G. Matsusaka & Jan Zabojnik, 2006.
"Disobedience and Authority,"
Working Papers
1109, Queen's University, Department of Economics.
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