This paper considers wage-hours contracts in the context of a job-search model. The response of a risk-averse worker to a wage translation of the offer distribution is examined. A robust example illustrates th at some "natural" results need not hold. Copyright 1987 by University of Chicago Press.

Statistical analysis of the job-search model has isolated the role played by the minimum observed wage in identifying and estimating behavioral parameters. Estimators based on order statistics, however, are influenced by measurement error in ways that estimators based on averages are not, and...