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We present a wage-hours contract designed to minimize costly job turnover given investments in on the job training …
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In this paper, a principal's decision between delegating two tasks or handling one of the two tasks herself is analyzed. We assume that the principal uses both, formal contracts and informal agreements sustained by the value of future relationships (relational contracts) as incentive device. It...
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employment contract. We show that not imposing such an agreement can be beneficial for the principal as the possibility to leave …
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