@techreport{NBERw1931, title = "Efficient Contracts with Costly Adjustment: Short-RUn Employment Determination for Airline Mechanics", author = "David Card", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "1931", year = "1986", month = "May", doi = {10.3386/w1931}, URL = "http://www.nber.org/papers/w1931", abstract = {This paper presents an empirical analysis of firm-specific employment and wage outcomes for mechanics in the domestic airline industry. A dynamic contracting model is presented that incorporates both costly employment adjustment and potential gaps between contract wage rates and the opportunity value of workers' time. The model gives a useful description of the employment-output linkage in the data, but is less successful in capturing the dynamic relation between employment, contract wage rates, and wage rates outside the airline industry.}, }