The effects of shock size and type on labor-contract duration

• 成果类型: Article; Proceedings Paper
• 署名作者: Wallace, FH
• 署名单位: Universidad de Guanajuato
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/322077
• 发表日期: 2001
• 页码: 658-681
• 关键词: monetary-policy; sticky prices; real; determinants; macroeconomy; AGREEMENTS; OIL

摘要

Empirical studies of the relation between uncertainty and the length of union-firm contracts have focused on the effects of inflation, money-supply, or industry-specific uncertainty. This article describes two extensions of previous work. First, real, aggregate uncertainty arising from oil shocks is incorporated into a contract-duration model. Oil shocks significantly affect contract length in seven of 21 U.S. manufacturing industries. Second, the model is used to test whether the duration of reopenable bargains is positively related to uncertainty associated with large shocks, as has been described in Danziger. The evidence indicates some qualified support for this proposition.