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Author: | Wolinsky, A. |
Title: | A theory of the firm with non-binding employment contracts |
Journal: | Econometrica
2000 : JUL, VOL. 68:4, p. 875-910 |
Index terms: | Employment contracts Theories Companies Bargaining Mathematical models |
Language: | eng |
Abstract: | This paper examines an employment relation in which individual workers enjoy some bargaining power vis-à-vis the firm although they are not unionized. Such employment relations are widespread. The employment contracts are non-binding across periods of production and the firm has opportunities to replace workers. Despite their obvious relevance, employment relations of this form have not been discussed extensively in the theoretical literature. |
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