TY  - JOUR
AU  - Haan,Wouter J. den
AU  - Ramey,Garey
AU  - Watson,Joel
TI  - Contract-Theoretic Approaches to Wages and Displacement
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6972
PY  - 1999
Y2  - February 1999
UR  - http://www.nber.org/papers/w6972
L1  - http://www.nber.org/papers/w6972.pdf
N1  - Author contact info:
Wouter J. den Haan
Department of Economics
University of Amsterdam
Roetersstraat
1017 RS  Amsterdam
Netherlands
Tel: +31(0)205255237
E-Mail: wjdenhaan@gmail.com

Garey Ramey
Department of Economics, 0508
University of California, San Diego
La Jolla, CA   92093-0508
Tel: 619/534-5721;  gramey@weber.ucsd.edu
E-Mail: gramey@ucsd.edu

Joel Watson
UC, San Diego
Department of Economics, 0508
9500 Gillman Drive
La Jolla, CA 92093-0508
E-Mail: jwatson@ucsd.edu
AB  - 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.
ER  -