HUMAN CAPITAL AND SELF-ENFORCING CONTRACTS

Costas Azariadis

No 268330, Economic Research Papers from University of Warwick - Department of Economics

Abstract: This essay analyzes labor contracts as a device for rearranging factor incomes over time when the lack of verifiable public information about future compensation prevents finitely-lived workers from borrowing against their earnings. Specific human capital is used as an incentive to implement intertemporal self-enforcing contracts between workers and firms. I propose a necessary and sufficient condition for the existence of such contracts, explore the resulting equilibrium earnings profiles, and investigate how imperfections in the credit market influence the way workers allocate time between current production and training.

Keywords: Agricultural and Food Policy; Labor and Human Capital (search for similar items in EconPapers)
Pages: 47
Date: 1987-05-05
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/268330/files/twerp281.pdf (application/pdf)
https://ageconsearch.umn.edu/record/268330/files/twerp281.pdf?subformat=pdfa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:268330

DOI: 10.22004/ag.econ.268330

Access Statistics for this paper

More papers in Economic Research Papers from University of Warwick - Department of Economics
Bibliographic data for series maintained by AgEcon Search ().