Credit, Incentives, and Reputation: A Hedonic Analysis of Contractual Wage Profiles
Loren Brandt () and
Arthur Hosios ()
Journal of Political Economy, 1996, vol. 104, issue 6, 1172-1226
A hedonic analysis of principal-agent employment contracts is developed, in which workers and employers exchange labor services and contractual payment patterns, and is applied to contract data from a household-level survey in rural China in 1935. The results indicate that credit-market constraints motivated workers' and employers' contract choices; that shirking by workers rather than by employers was the dominant incentive issue; that reputational concerns rather than threats of termination were the key worker-disciplining device; and, finally, that a contract's third party acted as an enforcement device rather than as a matchmaker. Copyright 1996 by University of Chicago Press.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
http://dx.doi.org/10.1086/262057 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpolec:v:104:y:1996:i:6:p:1172-1226
Access Statistics for this article
More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().