Labor Economics

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Chapter 6

Contracts, Risk-Sharing, and Incentive

In this chapter, we will:

  • Probe the reasons that firms and workers engage in long-term relationships
  • See how the trade-off between insurance and incentive acts upon the remuneration rule for labor
  • Investigate why firms make use of hierarchical promotions and internal markets
  • Learn what the deferred payment mechanism is
  • Discover what the efficiency wage theory has to tells us
  • Look at how social preferences react to incentives 

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Graphics of the chapter

Teaching slides

  • Presentation Title
  • author
  • Creation date
    • Contracts, risk-sharing and incentive
    • Pierre Cahuc, Stéphane Carcillo, André Zylberberg
    • 12/08/2014