Wage Profiles and Imperfect Capital Markets: A Positive Analysis.
This paper examines the structure of long-term employment contracts when labor is mobile and risk averse, employers are unable to monitor workers' outside job offers, workers cannot borrow against future income, and workers' productivity is increasing in the length of service with the long-term employer. Workers are then liquidity constrained, and the contract trades off consumption smoothing against efficiency in turnover. In contrast to previous papers which have examined this problem, this paper provides a continuous-time formulation that permits a detailed characterization of the properties of the wage profile.
Year of publication: |
1992
|
---|---|
Authors: | Arvin, B. Mak ; Arnott, Richard J. |
Published in: |
Canadian Journal of Economics. - Canadian Economics Association - CEA. - Vol. 25.1992, 3, p. 521-37
|
Publisher: |
Canadian Economics Association - CEA |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Wage profiles and imperfect capital markets : a positive analysis
Arvin, B. Mak, (1992)
-
A companion to urban economics
Arnott, Richard, (2006)
-
Pradhan, Rudra Prakash, (2020)
- More ...