The business cycle implications of reciprocity in labor relations
نویسندگان
چکیده
منابع مشابه
The Business Cycle Implications of Reciprocity in Labor Relations
We develop a reciprocity-based model of wage determination and incorporate it into a modern dynamic general equilibrium framework. We estimate the model and find that, among potential determinants of wage policy, rent-sharing (between workers and firms) and a measure of wage entitlement are critical to fit the dynamic responses of hours, wages and inflation to various exogenous shocks. Aggregat...
متن کاملThe Macroeconomic Consequences of Reciprocity in Labor Relations ∗
We develop and analyze a structural model of efficiency wages founded on reciprocity. Workers are assumed to face an explicit trade-off between the disutility of providing effort and the psychological benefit of reciprocating the gift of a wage offer above some reference level. The model provides a rationale for rent sharing—a feature that is very much present in the data but absent from previo...
متن کاملThe Macroeconomic Consequences of Reciprocity in Labor Relations: Appendix
One of the most provocative findings in experimental economics is that many individuals seem to be willing to spend considerable resources to reward (punish) fair (unfair) behavior by others even though no direct material gain derives from such action. In Fehr and Falk (1999), individuals are either assigned the role of a worker or a firm manager.1 Even though competitive bidding should push th...
متن کاملLabor Hoarding and the Business Cycle
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متن کاملExcess Labor and the Business Cycle
In a remarkable empirical study of 168 U.S. manufacturing plants, James Medoff and Jon Fay (1985) have examined the magnitude of labor hoarding during economic contractions. They found that during its most recent trough quarter, the typical plant paid for about 8 percent more blue-co&t hours than were needed for regular production work. Some of these hours were used for other worthwhile work, a...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2010
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2010.08.006