Reputation and Earnings Dynamics
Working Paper 28052
DOI 10.3386/w28052
Issue Date
Cyclical patterns in earnings can arise when contracts between firms and their workers are incomplete, and when workers cannot borrow or lend so as to smooth their consumption. Effort cycles generate occasional large changes in earnings. These large changes are transitory, consistent with recent empirical findings.
Published Versions
Boyan Jovanovic & Julien Prat, 2021. "Reputation and earnings dynamics," Journal of Economic Theory, vol 191. citation courtesy of