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On Modeling and Controlling the Effects of Variable Labor Effort: A Theoretical Explanation of the Truck System

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  • William Alpert

    (University of Connecticut)

  • John Stiver

    (University of Connecticut)

Abstract

In most Industrial and Industrializing Countries, labor markets are characterized by employers offering packages of wage, non-wage, and working conditions to prospective workers. In return, workers offer to apply effort to tasks determined by employers. This paper attempts to examine these employer-employee contracts using a stockout avoidance model with employees providing variable labor effort.

Suggested Citation

  • William Alpert & John Stiver, 2002. "On Modeling and Controlling the Effects of Variable Labor Effort: A Theoretical Explanation of the Truck System," Working papers 2002-38, University of Connecticut, Department of Economics.
  • Handle: RePEc:uct:uconnp:2002-38
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    File URL: http://web2.uconn.edu/economics/working/2002-38.pdf
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    References listed on IDEAS

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    1. Humphreys, Brad R. & Maccini, Louis J. & Schuh, Scott, 2001. "Input and output inventories," Journal of Monetary Economics, Elsevier, vol. 47(2), pages 347-375, April.
    2. Andreas Hornstein, 1998. "Inventory investment and the business cycle," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 49-71.
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