Advanced Search
MyIDEAS: Login to save this paper or follow this series

Labour makets with turnover costs and fixed wage contracts: a general equilibrium model

Contents:

Author Info

  • Larsen, J.D.J.

Abstract

This paper investigates the effects of linear turnover costs in employment in a competitive general equilibrium framework. with linear turnover costs, the Williamson (1975) hold-up issue can arise and firms may invest inefficiently. A renegotiable fixed wage contract can, as described by MacLeod and Malcomson (1993), establish efficient employment and investment decisions. A computable general equilibrium model with these features is constructed and analysed theoretically and quantitatively. As in the risk insurance literature, it is found that fixed wage contracts dampen the fluctuations in the average wage and ensure that the correlation between output and wages is less than perfect. Relative to the risk insurance approach to contracts, this offers an alternative extension and improvement of the standard competitive general equilibrium models.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Economics Division, School of Social Sciences, University of Southampton in its series Discussion Paper Series In Economics And Econometrics with number 9706.

as in new window
Length:
Date of creation: 01 Jan 1997
Date of revision:
Handle: RePEc:stn:sotoec:9706

Contact details of provider:
Postal: Highfield, Southampton SO17 1BJ
Phone: (+44) 23 80592537
Fax: (+44) 23 80593858
Email:
Web page: http://www.economics.soton.ac.uk/
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
  2. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:stn:sotoec:9706. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Thorn).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.