Efficient Contracts with Costly Adjustment: Short-RUn Employment Determination for Airline Mechanics
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.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.