Implicit contracts, layoffs, and labor costs
Trade Liberalization, Firm Heterogeneity, and Labor Layoffs: An Empirical Investigation
... Maximum Likelihood Estimation (MLE) results from the Heckman selection spec- ification (3.4)-(3.5) are reported in column 5 of Table 1. We start with analysis of the selection equation. First, and most importantly, we ...
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Labor market transitions after layoffs: the role of occupational skills
... If a worker were certain to remain with his initial firm indefinitely, he would invest in the particular skill bundle that maximizes the payoff in the initial firm. But the model allows for separations. Because other ...
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Contracts and the Division of Labor
... of costs. In addition to the direct pecuniary costs of engaging more suppliers (corresponding to the greater range of intermediate inputs), a more advanced technology necessitates contracting with more ...
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Implicit contracts and the cyclicality of the skill-premium
... Labor contracts of this nature were previously introduced in dynamic real business cycle models by Horvath (1994) and Boldrin and Horvath ...and labor hours menu. Both show that the model with ...
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Location costs, product quality, and implicit franchise contracts Haucap, Justus; Wey, Christian; Barmbold, Jens
... if contracts can be contingent on any state of the world, warranties might be costly to enforce for consumers, if courts do not work costlessly and states of the world are difficult to ...
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Labor Market Pooling, Outsourcing and Labor Contracts
... differential costs that small firms incur in offering ex ante wage con- tracts, we assume, in Section 4, that each component producer pays a premium as an additional fixed cost (τ − 1)aw > 0 (τ ≥ 1) that is ...
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Labor Market Pooling, Outsourcing and Labor Contracts
... differential costs that small firms incur in offering ex ante wage con- tracts, we assume, in Section 4, that each component producer pays a premium as an additional fixed cost (τ − 1)aw > 0 (τ ≥ 1) that is ...
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On the Efficacy of Implicit Contracts: the Role of Reciprocity in Contract Enforcement
... The SRT extends the WRT by adding a third stage in which firms can reward or punish workers, where rewards and punishments have pecuniary costs to the firm. Fehr et al. (1997) find that rent offers are higher in ...
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Involuntary Terminations under Explicit and Implicit Employment Contracts
... This means that if an implicit contract provision under which the present value of the costs of terminating an employee is positively related to the employee's company service is operati[r] ...
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Pricing the implicit contracts in the Paris Club debt buybacks
... To avoid these negotiations, the Paris Club has put in place rules based on fair treatment between debtors and creditors and on reconciliation of diverging interests. On the one hand, debtors were eager to have the right ...
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Chapter X. Costing Labor Contracts
... What is the cost of an 8% across the board pay increase? It is tempting to think that if you take the total payroll and multiplies it by 8% that you have a good estimate of the cost of this increase but this is just the ...
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Labor contracts and flexibility : evidence from a labor market reform in Spain
... dynamic labor de- mand model and evaluated the e¤ects of a reform that introduced temporary contracts in ...of labor adjustment costs, includ- ing …xed, linear and quadratic components, and ...
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Labor Contracts and Flexibility: Evidence from a Labor Market Reform in Spain
... the labor market institutions most commonly in- voked to explain the large and persistent differences between European and North American unemployment ...firing costs on employ- ment is ambiguous. Firing ...
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Labor contracts and flexibility : evidence from a labor market reform in Spain
... In the context of our model, the existence of kinked adjustment costs has two empirical implications: (1) the difference between marginal productivity of labor and wage should be l[r] ...
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Implicit labour contracts in hierarchical firms : some theoretical considerations
... 143 employment arrangements. In a two-period model we have shown that if the wage profile is upward sloping, then the worlcer has the risk of being not promoted after the training, and this results in a wage profile that ...
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Implicit contracts, takeovers and corporate governance: in the shadow of the city code
... extracting costs and synergies from mergers, which had left it with one of the lowest cost- income ratios in the industry and a return on equity above 30 ...
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Promise, Trust and Betrayal: Costs of Breaching an Implicit Contract
... 1 For surveys of price rigidity theories, see Gordon (1981, 1990), Rotemberg (1987), Caplin (1993), Weiss (1993), Romer (1993), Willis (2003), Wolman (2007), Klenow and Malin (2011), and Leahy (2011). 2 In the ...
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Pensions, Unions and Implicit Contracts
... Among those covered by pensions, unions and unionization appear to increase both the probability of belonging to a inultiemployer plan and of having a plan of the defined benefit variety[r] ...
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Contracts and the Division of Labor
... of labor. In the model economy, a …rm decides the division of labor and contracts with its worker-suppliers on a subset of activities they have to ...of labor and the equilibrium level of ...
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Controlling Workers Compensation Costs During Facility Closures and Layoffs
... Develop a plan, focusing on two critical areas. The first step is to develop and implement ways to help reduce the number of open claims, and find alternatives for assisting the displaced employees. There are a wide ...
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