Projects per year
We present an overview of models of long-term self-enforcing labour con- tracts in which risk-sharing is the dominant motive for contractual solutions. A base model is developed which is sufficiently general to encompass the two-agent problem central to most of the literature, including variable hours. We consider two-sided limited commitment and look at its implications for aggregate labour market variables. We consider the implications for empirical testing and the available empirical evidence. We also consider the one-sided limited commitment problem for which there exists a considerable amount of empirical support.
|Number of pages||31|
|Publication status||Published - 1 Jan 2007|
|Name||Keele economics research paper|