This paper examines the ex post flexibility of U.S. labor contracts during the 1970-95 period by investigating whether unanticipated changes in inflation increase the likelihood of a contract being renegotiated prior to its expiration. We find strong empirical support for this hypothesis....

This paper examines the ex post flexibility of U.S. labor contracts during the 1970-95 period by investigating whether unanticipated changes in inflation increase the likelihood of a contract being renegotiated prior to its expiration. We find strong empirical support for this hypothesis....

Until the mid-nineteenth century, English and American courts held that indefinite employment contracts could not be terminated at will. The stance was a legacy of strictures found in the Statute of Artificers. But by the turn of the century, English and American law no longer agreed. In...

Theorien der Behavioral Labor Economics weichen vom Standardmodell der Ökonomie ab und stellen insbesondere die diesem Standardmodell zugrunde liegende Annahme von rationalen und egoistischen Entscheidern – der Annahme des Homo oeconomicus – infrage. Sie unterstellen Handlungsweisen, die...