On employment, wage and risk sharing in labor contracts

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

This note studies risk sharing in labor contracts when the price of the firm's product is uncertain. It demonstrates that if the firm adjusts employment at its own discretion, then the wage should not in general be constant, but should be constant only if the production function is of the Cobb-Douglas type.

Original languageEnglish
Pages (from-to)181-186
Number of pages6
JournalEconomics Letters
Volume8
Issue number2
DOIs
StatePublished - 1 Jan 1981
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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