Adhvaryu, Achyuta; Gauthier, Jean-Francois; Nyshadham, Anant - National Bureau of Economic Research - 2021
ready-made garment factories. We focus on how relational contracts help managers cope with worker absenteeism shocks, which … least likely to reflect relational borrowing responses to idiosyncratic absenteeism shocks. Counterfactual simulations … reveal large gains to reducing costs associated with forming and maintaining additional relationships among managers …