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the employment contract to changes of the market (wage). All treatments allow for longer contract duration as well as for … mutually opting to be rematched. Effort is chosen by employees after a contract is concluded. Treatments vary from no flexibility … ; principal-agent theory ; experimental economics ; repeated interaction …
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Facing a stochastic market wage, which is independent of their own hiring policy, employers offer contracts specifying fixed wage, revenue share and employment duration. In ongoing employment relations it depends on the treatment whether fixed wages can be only increased or also decreased. Will...
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