Transactions Costs and the Employment Contract in the US Economy

W. Bentley Macleod and Daniel Parent ()

No 7306, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we adapt the model of MacLeod (2007) to provide one way to formally implement some of Williamson's ideas regarding the effect of transactions costs upon employment relationship. We then explore the empirical implications of this model with a data set that measures job characteristics using the Dictionary of Occupational Titles (DOT), and merge this data set with the Panel Study on Income Dynamics (PSID). We find that viewing the data through the lens of transactions costs economics provide a useful way to organize the data on compensation in the US labor market.

Keywords: compensation; transactions costs; labor markets (search for similar items in EconPapers)
JEL-codes: J33 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2013-03
New Economics Papers: this item is included in nep-lab and nep-lma
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Citations: View citations in EconPapers (2)

Published - published in: Journal of Law, Economics, and Organization, 2015, 31 (S1), i40–i76,

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Journal Article: Transaction Costs and the Employment Contract in the US Economy (2015)
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