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Workers' Behavior And Labor Contract: An Evolutionary Approach

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  • Victor Hiller

Abstract

This paper investigates the co‐evolution of labor relationships and workers' preferences. The workforce is composed by cooperative and non‐cooperative workers, while firms offer either explicit or implicit contracts. Both the distribution of preferences and the nature of labor contract are endogenized: firms invest in corporate culture in order to change workers' preferences and the proportion of each type of contract is driven by an evolutionary process. The complementarity between the transmission of cooperation and the implementation of implicit contracts leads to multiple equilibria and path dependence phenomenon. This property is illustrated by historical evolutions of American and Japanese labor contracts.

Suggested Citation

  • Victor Hiller, 2010. "Workers' Behavior And Labor Contract: An Evolutionary Approach," Metroeconomica, Wiley Blackwell, vol. 61(1), pages 152-179, February.
    • Handle: RePEc:bla:metroe:v:61:y:2010:i:1:p:152-179
    DOI: 10.1111/j.1467-999X.2009.04064.x
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    Cited by:

    1. Gregory Ponthiere, 2011. "Mortality, Family and Lifestyles," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 175-190, June.
    2. Ricardo Azevedo Araujo & Helmar Nunes Moreira, 2014. "Lyapunov stability in an evolutionary game theory model of the labour market," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 15(1), pages 41-53.
    3. Araujo, Ricardo Azevedo, 2011. "Lyapunov Stability in an Evolutionary Game Theory Model of the Labor Market," MPRA Paper 29957, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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