Termination of Dynamic Contracts in an Equilibrium Labor Market Model

Preprint OPEN
Wang, Cheng;
  • Subject: dynamic contract; termination; labor market equilibrium
    • jel: jel:E20 | jel:J41 | jel:J63

I construct an equilibrium model of the labor market where workers and firms enter into dyamic contracts that can potentially last forever, but are subject to optimal terminations. Upon a termination, the firm hires a new worker, and the worker who is terminated receive... View more
  • References (19)
    19 references, page 1 of 2

    [11] Jovanovic, B. (1979). Job matching and the theory of turnover. Journal of Political Economy, 87:972-990.

    [12] Khan, A. and B. Ravikumar (2002), Enduring Relationships in an Economy with Capital, University of Iowa, working paper.

    [13] Kim, Sun-Bin (2001), Labor Force Participation, Worker Flows and Labor Market Policies, University of Pennsylvania, working paper.

    [14] Kocherlakota N. (1996), Implications of Risk Sharing Without Commitment. Review of Economic Studies, 63, 595-609.

    [15] Krueger D. and H. Uhlig (2006), Competitive Risk Sharing Contracts with OneSided Commitment, Journal of Monetary Economics.

    [16] Lazear, E.P. (1979), Why is there mandatory retirement? Journal of Political Economy 87(6), 1261-1284.

    [17] MacLeod W. B. and J. M. Malcomson (1989) Implicit contracts, incentive compatibility, and involuntary unemployment, Econometrica 57(2), 447-480.

    [18] Mortensen, D.T. and Pissarides, C.A. (1994), Job Creation and Job Descruction in the Theory of Unmployment, Review of Economc Studies, 61(3), 397-415.

    [19] Moscarini, G. (2005), Job Matching and the Wage Distribution, Econometrica, 73(2), 481-516.

    [20] Nagypal, Eva (2005), On the extent of job-to-job transitions. Working Paper, Northwestern University.

  • Metrics
Share - Bookmark