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Query: faculty: "FEB" and publication year: "2001"

AuthorsE. Leuven, H. Oosterbeek
TitleFirm-Specific Human Capital as a Shared Investment: Comment
JournalThe American Economic Review
FacultyFaculty of Economics and Business
Institute/dept.FEB: Amsterdam School of Economics Research Institute (ASE-RI)
KeywordsHuman capital; Wages; Employment; Labor market
AbstractThis paper shows that the comparative statics are ambiguous and may well be the opposite of those suggested by Masanori Hashimoto (1981) and claimed by Donald O. Parsons (1986). It also provides the intuition that is behind this result, namely that uncertainty not only influences turnover but also the option value of the match and its opportunity cost. Section I, briefly summarizes Hashimoto's model and shows that without further assumptions the comparative statics are ambiguous. Section II derives an explicit solution of the wage. Section III briefly considers alternative wage-setting schemes and Section IV concludes.
Document typeArticle
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