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Title: Costly Employment Contract Renegotiation and the Labor Mobility of Young Men
Resulting in 1 citation.
1. Antel, John J.
Costly Employment Contract Renegotiation and the Labor Mobility of Young Men
American Economic Review 75,5 (December 1985): 976-991.
Also: http://www.jstor.org/stable/1818640
Cohort(s): Young Men
Publisher: American Economic Association
Keyword(s): Behavior; Employment, Youth; Job Productivity; Layoffs; Marital Status; Mobility; Mobility, Job; Quits; Transition, School to Work

Permission to reprint the abstract has not been received from the publisher.

A model of job matching with costly post-hire negotiations is developed that is similar in some aspects to Hashimoto's (1981) model, but with particular relevance to the population of young workers only beginning their labor force participation. The model yields empirical implications concerning the role of wages in the determination of mobility that contrast to the implications of an otherwise similar zero negotiations cost model of job matching. The model focuses on the period immediately following hire when worker productivity is to a great extent governed by endowed capabilities rather than determined by learning on the job. The data consist of 709 observations derived from the NLS of Young Men. Job change behavior is tracked between the 1969 and 1970, and also the 1970 and 1971 contiguous surveys. The empirical results show that quits and permanent layoffs are different. The results tend to confirm the model of job matching with costly contract renegotiation.
Bibliography Citation
Antel, John J. "Costly Employment Contract Renegotiation and the Labor Mobility of Young Men." American Economic Review 75,5 (December 1985): 976-991.