. Changing the inherited combination of output, employment, and wages could be in the interest of workers, managers, or both … parties. The implications for wages and profits were hard to predict but the concievable scenarios of adjustment unanimously … implied lower employment. The hypotheses are tested against data on output, employment, wages and profits from a panel of 2666 …

initially negative effect on employment that turns positive after about one year while the impact on wages is permanently … that these results are driven by a drop in the reservation wages of 'converted' criminals rather than the lack of …