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other

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1985

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Uncertainty and Front-End Loading of Labor Agreements
Journal of Labor Research , 6(1), February 1985, pp. 113-117
Abstract: Uncertainty of future prices is offered as an explanation for front-end loading of real wages in nominal wage contracts. Exploitation of mutually beneficial gains from trade between risk-neutral employers and employees implies an expected future real wage that is lower the greater is the uncertainty of future prices, and the observed extent of front-end loading is consistent with plausible values of uncertainty of future prices.
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