We provide evidence on how two important types of institutions - dismissal barriers, and bonus pay - affect contract enforcement behavior in a market with incomplete contracts and repeated interactions. Dismissal barriers are shown to have a strong negative impact on worker performance, and...

The authors examine changes in the wages, employment, and effort of nurses in California hospitals following takeovers by large chains using 1990s data. The market for nurses has been described as a classic monopsony, so that one might expect increases in firm market power to be associated with...