Individual employment contracts
AbstractThis chapter reviews recent developments in the study of individual employment contracts. It discusses three reasons for an employer and an employee to have a contract: (i) to allocate risk in a way different from a spot market; (2) to enhance the efficiency of investment decisions by protecting the return on investments made by one party from being captured by the other; and (3) to motivate the employee by making compensation depend on performance. The main emphasis is on issues that arise from the problems of enforcing contracts in practice and from renegotiation by mutual agreement.
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Bibliographic InfoPaper provided by Economics Division, School of Social Sciences, University of Southampton in its series Discussion Paper Series In Economics And Econometrics with number 9804.
Date of creation: 01 Jan 1998
Date of revision:
Other versions of this item:
- J0 - Labor and Demographic Economics - - General
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