Reputation and earnings dynamics

Boyan Jovanovic (1) , Julien Prat (2, 3)

1 NYU - New York University [New York]
2 X-DEP-HSS - Département d'Humanités et Sciences Sociales de l'École polytechnique
3 CREST - Centre de Recherche en Économie et Statistique

Cyclical patterns in earnings can arise when contracts between firms and their workers are incomplete, and when workers cannot borrow or lend so as to smooth their consumption. Effort cycles generate occasional large changes in earnings. These large changes are transitory, consistent with recent empirical findings.

Mots clés: Reputation; Career Concerns; Earnings Dynamics; Endogenous Fluctuations

Domaines: Economies et finances

Boyan Jovanovic, Julien Prat. Reputation and earnings dynamics. Journal of Economic Theory, 2021, 191, pp.105158. ⟨10.1016/j.jet.2020.105158⟩. ⟨hal-03096282⟩