Based on firm‐level payroll data from around 2000 member firms of the BritishEngineering Employers’ Federation we examine the behavior of real hourly earnings over the1927‐1937 cycle that contained the Great Depression. The pay statistics are based on adultmale blue‐collar workers within...

Policy shocks affect the rent distribution in long-term contracts, which can lead to such contracts being renegotiated. We seek an understanding of what aspects of contract design, in the face of a substantial policy shock, affect the propensity to renegotiate. We test our hypotheses using data...