Implicit long-term labor contracts provide a characterization of the employment relationship markedly different from that suggested by a "spot" labor market. Long-term implicit agreements are of considerable interest because their use is consistent with many stylized facts of the labor market,...

Recent research on labor markets has focused on the ability of the firm to influence the productivity of its employees. While most of this research has concentrated on the structure of the compensation package the employer can offer its employees, there has also been interest in the employer's...