The optimal contract under moral hazard is embedded in a standard MortensenPissarides matching model. Under standard assumptions, we show that when firms cannot perfectly observe workers’ productivity the optimal contract can take the form of a debt contract exhibiting almost a fixed wage along the business cycle. When this contract is embedded in the standard matching model, the calibrated mod...

OBJECTIVES The purpose of this study was to investigate the cross-sectional association of employment contract, company size, and occupation with psychological distress using a nationally representative sample of the Japanese population. METHODS From June through July 2007, a total of 9,461 male and 7,717 female employees living in the community were randomly selected and surveyed using a sel...

BACKGROUND To examine the differences in the incidence of registered sickness absence by type of employment contract in a large representative sample of salaried workers in Spain in 2009. METHOD A study of 653,264 salaried workers covered by the Social Security system who had 133,724 sickness absence episodes in 2009. Crude and adjusted rate ratios and their corresponding 95 % confidence inte...

This paper analyses the optimal wage contract when firms face demand uncertainty and workers care about employment stability. Workers choose the firm that offers the highest utility taking into account the future lay-off probabilities; firms choose the wage contract that maximises the residual share of the gains from production. For risk-neutral workers this occurs with any efficient wage contr...

This study examines training investments in two-tier labor markets, focusing on the role of job match quality. Temporary workers are in general more likely than permanent workers to leave their employer and therefore are less likely to receive employer-funded training. However, as firms prefer to continue productive job matches, we hypothesize that the negative effect of holding a temporary con...

We present results from a field experiment designed to measure the importance of managerial commitment to a contract within a firm that pays its workers piece rates. In the tree planting industry the piece rate paid to workers is determined as a function of the difficulty of the terrain to be planted. During the experiment, workers began planting a terrain at a trial piece rate, but were told t...

Legal protection has a meaning as by using legal means or provided law, aimed at the of certain interests, namely making interests that need to be protected into right. wages contract workers according Law No. 13 2003 concerning Manpower and Islamic well similarities differences. The results this study indicate between law is show not guaranteed welfare includes six things, namely: / laborers w...