Published May 2010 | Version Published
Working Paper Open

Contracts vs. Salaries in Matching

Abstract

Firms and workers may sign complex contracts that govern many aspects of their interactions. I show that when firms regard contracts as substitutes, bargaining over contracts can be understood as bargaining only over wages. Substitutes is the assumption commonly used to guarantee the existence of stable matchings of workers and firms.

Additional Information

I thank Vince Crawford, Flip Klijn, Scott Kominers, and Michael Ostrovsky for very useful comments. I am also very grateful to three anonymous referees for their thoughtful questions and suggestions.

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Identifiers

Eprint ID
20348
Resolver ID
CaltechAUTHORS:20101008-093110872

Dates

Created
2010-10-08
Created from EPrint's datestamp field
Updated
2019-11-26
Created from EPrint's last_modified field

Caltech Custom Metadata

Caltech groups
Social Science Working Papers
Series Name
Social Science Working Paper
Series Volume or Issue Number
1322