Contract-Theoretic Approaches to Wages and Displacement
This paper develops a theoretical framework for analyzing contracting imperfections in long-term employment relationships. We focus chiefly on limited enforceability and limited worker liquidity. Inefficient severance of employment relationships, payment of efficiency wages, the relative responses of wages and employment to business cycle shocks, and the propagation of these shocks are linked to the nature of contracting imperfections.
|Date of creation:||Apr 1999|
|Date of revision:|
|Publication status:||Published in Review, Federal Reserve Bank of St. Louis, (May/June 1999), 81: 55-68|
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|Order Information:|| Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA|
References listed on IDEAS
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