Regulating Damage Clauses in (Labor) Contracts

Labor market pooling , outsourcing and labor contracts

Labor Market Pooling, Outsourcing and Labor Contracts Economic regions, such as urban agglomerations, face external demand and price shocks that produce income risk. Workers in large and diversified agglomerations may benefit from reduced wage volatility, while firms may outsource the production of intermediate goods and realize benefits from Chamberlinian externalities. Firms may also protect ...

Incomplete Self-Enforcing Labor Contracts

We consider a model economy populated by risk-neutral …rms with multiple jobs and riskaverse workers. Following the implicit contract literature, we assume that workers have limited access to the intertemporal trade markets. Following the directed search literature, we assume that unemployed workers can choose which …rms to visit after having observed what terms of trade are o¤ered. Further, we...

Image Right Clauses in Football Contracts: Masterstroke for Mutual Success?

Football, which was once considered only a game, as now metamorphosed into a never-ending drama, “a soap opera watched all over the world” [1]. The overall appeal of sport has thus made it increasingly synonymous with wealth creation [2]. Particularly, football as a business continues to grow at an exponential rate from year to year. As revealed by Deloitte, this staggering growth becomes more ...

Dispute Resolution Clauses in International Contracts: An Empirical Study

Relational Contracts in Competitive Labor Markets∗

This paper characterizes the distribution of jobs in a relational contracting model where both employed and unemployed workers compete for jobs. In equilibrium, identical firms offer a continuous distribution of contracts, with some firms offering high-wage, high-productivity contracts and others offering low-wage, low-productivity contracts. An increase in on-the-job-search affects equilibrium...