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Relational Contracts and the Nature of Market Interactions

Brown, Martin; Falk, Armin; Fehr, Ernst - Institute for the Study of Labor (IZA) - 2003

We provide evidence that long-term relationships between trading parties emerge endogenously in the absence of third party enforcement of contracts and are associated with a fundamental change in the nature of market interactions. Without third party enforcement, the vast majority of trades are...

Persistent link: https://www.econbiz.de/10005703546

The Spot Market Matters: Evidence on Implicit Contracts from Britain

Devereux, Paul J.; Hart, Robert A. - Institute for the Study of Labor (IZA) - 2005

Based on the methodology of Beaudry and DiNardo (1991), this paper investigates the relative importance of the spot market and implicit contracts in the determination of British real wages. Empirical work is carried out separately for males and females with individuallevel data taken from the...

Persistent link: https://www.econbiz.de/10005823009

Implicit Contracts, Unemployment, and Labor Market Segmentation

Altmann, Steffen; Falk, Armin; Huffman, David - Institute for the Study of Labor (IZA) - 2010

We analyze the impact of imperfect contract enforcement on the emergence of unemployment. In an experimental labor market where trading parties can form long-term employment relationships, we compare a work environment where effort is observable, but not verifiable to a situation where explicit...

Persistent link: https://www.econbiz.de/10008602725

Do the Selfish Mimic Cooperators? Experimental Evidence from Finitely-Repeated Labor Markets

Roe, Brian E.; Wu, Steven Y. - Institute for the Study of Labor (IZA) - 2009

Experimental studies have consistently shown that cooperative outcomes can emerge even in finitely repeated games. Such outcomes are justified by existing reputation building models, which suggest that cooperative outcomes can be sustained if some subjects have other-regarding preferences. While...

Persistent link: https://www.econbiz.de/10005566817

Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?

Böckerman, Petri; Maliranta, Mika - Institute for the Study of Labor (IZA) - 2013

This paper examines the relationship between outsourcing and various aspects of employee well-being by devoting special … employees' job satisfaction is reduced. However, the relationship between outsourcing and employee well-being is not entirely …

Persistent link: https://www.econbiz.de/10010884090

On the Organizational Structure of Multinational Firms: Which Sourcing Mode for Which Input?

Suedekum, Jens; Nowak, Verena; Schwarz, Christian - Institute for the Study of Labor (IZA) - 2012

organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the "indirect … outsourcing of the "less important" supplier is chosen in equilibrium. We also consider an open economy setup where the producer …

Persistent link: https://www.econbiz.de/10011279357

Equilibrium Unemployment with Outsourcing and Wage Solidarity Under Labour Market Imperfections

Koskela, Erkki; Stenbacka, Rune - Institute for the Study of Labor (IZA) - 2007

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high …

Persistent link: https://www.econbiz.de/10005233784

Construction Contracts (or: "How to Get the Right Building at the Right Price?")

Chakravarty, Surajeet; MacLeod, W. Bentley - Institute for the Study of Labor (IZA) - 2006

Most contracts that individuals enter into are not written from scratch; rather, they depend upon forms and terms that have been successful in the past. In this paper, we study the structure of form construction contracts published by the American Institute of Architects (AIA). We show that...

Persistent link: https://www.econbiz.de/10005233914

Global Sourcing of Complex Production Processes

Schwarz, Christian; Suedekum, Jens - Institute for the Study of Labor (IZA) - 2010

We develop a theory of a firm in an environment with incomplete contracts. The firm’s headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value...

Persistent link: https://www.econbiz.de/10008693834

Analysis of Labor Tax Progression under Heterogeneous Domestic Labor Markets and Flexible Outsourcing

Koskela, Erkki - Institute for the Study of Labor (IZA) - 2010

-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …

Persistent link: https://www.econbiz.de/10008693839