Employment contracts, job search theory, and labour turnover: preliminary empirical results

The empirical implications of a model in which a worker participates in a labour market in which a job offer consists of a wage-hour pair are examined. Here, hours are not freely adjustable and the wage rate is typically different from the marginal value of leisure. A theoretical model is proposed; some natural conjectures on effects of wage changes are shown not to hold; and a preliminary empirical investigation based on Denver Income Maintenance Experiment data is undertaken.