Research output

Article in Journal ()

The Spot Market Matters: Evidence on Implicit Contracts from Britain

Devereux PJ & Hart RA (2007) The Spot Market Matters: Evidence on Implicit Contracts from Britain, Scottish Journal of Political Economy, 54 (5), pp. 661-683.

Based on the methodology of Beaudry and DiNardo (1991), this paper investigates the relative importance of the spot market and implicit contracts in the determination of British real wages. Empirical work is carried out separately for males and females with individual-level data taken from the New Earnings Survey Panel for the years 1976-2001. In contrast to previous studies that used North American data, the spot market is found to be more important than implicit contracts in determining real wages, although we do find some support for contracting effects. Further evidence is provided through the analysis of individual wage sequences. These suggest that the downwardly rigid wage sequences implied by implicit contracts with costless worker mobility are not prevalent in Britain.

analysis; Britain; British; CONTRACTS; data; empirical; evidence; Female; Females; INVESTIGATE; Male; MALES; market; MATTER; Methodology; mobility; REAL; REAL wages; SEQUENCE; SEQUENCES; support; survey; WAGE; WAGES; work

AuthorsDevereux Paul J, Hart Robert A
Publication date11/2007
Publication date online30/10/2012
ISSN 0036-9292

Scottish Journal of Political Economy: Volume 54, Issue 5 (2007/11//)

© University of Stirling FK9 4LA Scotland UK • Telephone +44 1786 473171 • Scottish Charity No SC011159
My Portal