This paper develops a theoretical framework for analyzing contracting imperfections in long-term employment … relationships. We focus chiefly on limited enforceability and limited worker liquidity. Inefficient severance of employment … relationships, payment of efficiency wages, the relative response of wages and employment to business cycle shocks, and the …

form of contract governance. Under plausible assumptions, such agreements will cause employment to diverge from efficiency …This paper studies the efficient agreements about the dependence of workers' earnings on employment, when the … employment level is controlled by firms. The firms ' superior information about profitability conditions is responsible for this …

employers has declined since the 1980s, yet there is a commonly expressed view that long-term employment relationships are more … difficult to attain. We reconcile these observations by examining how the distribution of employment tenure has changed in … tenure has declined markedly among older men; this trend may have spurred popular perceptions that long-term employment is …

provision of marginal incentives, and applies the theory to explain variation in the form of compensation of over-the-road truck … of hauls in a way that is consistent with the theory. By contrast, we find that vehicle ownership, which defines a driver …

nonunion workers may be covered by implicit employment contracts which give more protection against termination to those with …

The non-tradability of human capital is often cited for the failure of traditional asset pricing theory to explain …