Efficient Contracts with Costly Adjustment: Short-RUn Employment Determination for Airline Mechanics / David Card.

Format:

Book

Author/Creator:

Card, David.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1931.

NBER working paper series no. w1931

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Efficient Contracts with Costly Adjustment

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1986.

Summary:

This paper presents an empirical analysis of firm-specific

employment and wage outcomes for mechanics in the domestic airline

industry. A dynamic contracting model is presented that incorporates

both costly employment adjustment and potential gaps between contract

wage rates and the opportunity value of workers' time. The model gives

a useful description of the employment-output linkage in the data, but

is less successful in capturing the dynamic relation between employment,

contract wage rates, and wage rates outside the airline industry.

Notes:

Print version record

May 1986.