Changes in the Employment Contract ? Evidence from a Quasi-experiment

  title={Changes in the Employment Contract ? Evidence from a Quasi-experiment},
  author={Gary Charness and David I. Levine},
Many authors have discussed an apparent shift to a new employment contract characterized by less commitment between employer and employee, and closer ties between wages within the enterprise and those in the external labor market. We study the issue of when people in the US and Canada feel pay cuts are fair. In contrast to much previous discussion, we find no evidence of increasing acceptance of pay cuts—a measure of whether external, not internal, labor markets are considered fair. These… CONTINUE READING

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