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The Labor Market and Corporate Structure

Author

Listed:
  • Acemoglu, D.
  • Newman, A.F.

Abstract

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.

Suggested Citation

  • Acemoglu, D. & Newman, A.F., 1997. "The Labor Market and Corporate Structure," Working papers 97-8, Massachusetts Institute of Technology (MIT), Department of Economics.
  • Handle: RePEc:mit:worpap:97-8
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    References listed on IDEAS

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    1. Daron Acemoglu, 1999. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," American Economic Review, American Economic Association, vol. 89(5), pages 1259-1278, December.
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    6. Bulow, Jeremy I & Summers, Lawrence H, 1986. "A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 376-414, July.
    7. Lawrence F. Katz & Gary W. Loveman & David G. Blanchflower, 1995. "A Comparison of Changes in the Structure of Wages in Four OECD Countries," NBER Chapters,in: Differences and Changes in Wage Structures, pages 25-66 National Bureau of Economic Research, Inc.
    8. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
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    Citations

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    Cited by:

    1. Acemoglu, Daron, 2001. "Credit market imperfections and persistent unemployment," European Economic Review, Elsevier, vol. 45(4-6), pages 665-679, May.
    2. Patrick Legros & Andrew F. Newman & Eugenio Proto, 2014. "Smithian Growth through Creative Organization," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 796-811, December.
    3. Ján Zábojník, 2010. "Disobedience and Authority," Journal of Law, Economics, and Organization, Oxford University Press, vol. 26(3), pages 427-459.
    4. Abián García-Rodríguez & Fernando Sánchez-Losada, 2014. "R&D poverty traps," UB Economics Working Papers 2014/307, Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics.
    5. Patrick Legros & Andrew F. Newman, 2014. "Contracts, Ownership, and Industrial Organization: Past and Future," Journal of Law, Economics, and Organization, Oxford University Press, vol. 30(suppl_1), pages 82-117.
    6. Paul Beaudry & Patrick Francois, 2010. "Managerial Skills Acquisition and the Theory of Economic Development," Review of Economic Studies, Oxford University Press, vol. 77(1), pages 90-126.
    7. Sergio Scicchitano, 2014. "The gender wage gap among Spanish managers," International Journal of Manpower, Emerald Group Publishing, vol. 35(3), pages 327-344, May.
    8. Oscar Landerretche Moreno, 2007. "Creation and Destruction: Evidence from an Emerging Market," Working Papers wp246, University of Chile, Department of Economics.
    9. Adel Ben Youssef & Walid Hadhri & Hatem M’henni, 2010. "Intra-Firm Diffusion of Innovation: Evidence from Tunisian SME’s in Matters of Information and Communication Technologies," Working Papers 532, Economic Research Forum, revised 07 Jan 2010.
    10. Semih Akcomak & Henri de Groot & Stefan Groot, 2013. "The impact of trade, offshoring and multinationals on job loss and job finding," CPB Discussion Paper 252, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Schymik, Jan, 2013. "Trade, Technologies and the Talent Organization," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79922, Verein für Socialpolitik / German Economic Association.
    12. Marcel Fafchampsm & Måns Söderbom, 2006. "Wages and Labor Management in African Manufacturing," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    13. Aghion, Philippe & Dewatripont, Mathias & Legros, Patrick & Zingales, Luigi (ed.), 2016. "The Impact of Incomplete Contracts on Economics," OUP Catalogue, Oxford University Press, number 9780199826216.
    14. Dinardo, John & Hallock, Kevin F & Pischke, Jörn-Steffen, 2000. "Unions And The Labour Market For Managers," CEPR Discussion Papers 2418, C.E.P.R. Discussion Papers.
    15. Burdín, Gabriel & Halliday, Simon & Landini, Fabio, 2015. "Third-Party vs. Second-Party Control: Disentangling the Role of Autonomy and Reciprocity," IZA Discussion Papers 9251, Institute for the Study of Labor (IZA).
    16. Marco Biagetti & Sergio Scicchitano, 2016. "Are women in supervisory positions more discriminated against? A multinomial approach," Working Papers 2, Department of the Treasury, Ministry of the Economy and of Finance.
    17. Oscar Landerretche, 2007. "Job flows in chile," Working Papers wp240, University of Chile, Department of Economics.
    18. John McLaren, 2000. ""Globalization" and Vertical Structure," American Economic Review, American Economic Association, vol. 90(5), pages 1239-1254, December.
    19. John Heywood & Uwe Jirjahn & Georgi Tsertsvadze, 2011. "Part-time work and the hiring of older workers," Applied Economics, Taylor & Francis Journals, vol. 43(28), pages 4239-4255.
    20. Axelson, Ulf & Bond, Philip, 2015. "Wall Street occupations," LSE Research Online Documents on Economics 37448, London School of Economics and Political Science, LSE Library.
    21. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
    22. Bertrand Wigniolle, 2001. "Croissance, innovations organisationnelles et progrès technique biaisé," Économie et Prévision, Programme National Persée, vol. 150(4), pages 159-170.
    23. Adel Ben Youssef & David Castillo Merino & Walid Hadhri, 2012. "Determinants of Intra-firm Diffusion Process of ICT: Theoretical Sources and Empirical Evidence from Catalan Firms," Post-Print halshs-00937176, HAL.
    24. repec:eee:eecrev:v:102:y:2018:i:c:p:39-61 is not listed on IDEAS
    25. Ferreira de Mendonça, Helder & Martins Esteves, Diogo, 2014. "Income inequality in Brazil: What has changed in recent years?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.

    More about this item

    Keywords

    EFFICIENCY ; WAGES ; MORAL HAZARD ; CORPORATIONS ; REGULATIONS;

    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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