NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Contract-Theoretic Approaches to Wages and Displacement

Wouter J. den Haan, Garey Ramey, Joel Watson

NBER Working Paper No. 6972
Issued in February 1999
NBER Program(s):   EFG

This paper develops a theoretical framework for analyzing contracting imperfections in long-term employment relationships. We focus chiefly on limited enforceability and limited worker liquidity. Inefficient severance of employment relationships, payment of efficiency wages, the relative response of wages and employment to business cycle shocks, and the propagation of these shocks are linked to the nature of contracting imperfections.

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Document Object Identifier (DOI): 10.3386/w6972

Published: Wouter J. den Haan & Garey Ramey & Joel Watson, 1999. "Contract-theoretic approaches to wages and displacement," Review, Federal Reserve Bank of St. Louis, issue May, pages 55-68. citation courtesy of

 
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