TY  - RPRT
        AU  - Danziger, Leif
        TI  - Uniform and Nonuniform Staggering of Wage Contracts
        PY  - 2010/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5023
        UR  - https://www.iza.org/publications/dp5023
        AB  - This paper provides a model that can account for the almost uniform staggering of wage contracts in some countries as well as for the markedly nonuniform staggering in others. In the model, short and long contracts as well as long contracts concluded in different periods are strategic substitutes, which provides a powerful rationale for staggering. We show that for realistic parameter values, there is a continuum of possible equilibria with various degrees of staggering of long contracts. If the contracting cost is not too large, then the lowest possible degree of staggering decreases with the contracting cost and increases with monetary uncertainty.
        KW  - wage contracts
KW  - uniform staggering
KW  - nonuniform staggering
KW  - monetary policy shocks
KW  - strategic substitutability
KW  - contract duration
        ER  -