This paper examines how employer- and worker-specific productivity shocks transmit to earnings and employment in an … backloaded in good times and frontloaded in bad times. We prove that there exists a unique spot target wage, which serves as an … attraction point for smooth wage adjustments. The structural model is estimated on matched employer-employee data from Sweden …

This paper examines how employer- and worker-specific productivity shocks transmit to earnings and employment in an … backloaded in good times and frontloaded in bad times. We prove that there exists a unique spot target wage, which serves as an … attraction point for smooth wage adjustments. The structural model is estimated on matched employer-employee data from Sweden …

The employment structure of India's organised manufacturing sector has undergone substantial changes over the last … has attributed the widespread use of contract labour to India's rigid employment protection legislation. Using plant level … data from the Annual Survey of Industries, we find that in addition to labour market rigidities and the existence of a wage …

This paper studies the productivity impact of a contract change for tea pluckers in an Indian plantation. The contract … between twenty unions and plantations, (b) mandated to respect a state government notification stipulating a new minimum wage … raised the baseline wage by 30% but lowered marginal incentives, by shifting the existing piece rates to higher minimum …

Conventional theory predicts that productivity gains lead to hikes in real pay. Efficiency wage theory hypothesizes … efficiency benefit of corporatism. For laborers in manufacturing, we find that wage hikes result in productivity gains. Managers … that pay increases can lead to productivity improvements. But would such results be observed in a corporatist economy with …