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Finnish Economic Papers

Screening Contracts when Institutions Matter: An Example

Journal Article
Kazamaki Ottersten, Eugenia (1998). “Screening Contracts when Institutions Matter: An Example”. Finnish Economic Papers 11(2), 110–116.

Eugenia Kazamaki Ottersten

Based on the notion of affiliation a model is developed which suggests that laws which restrict the firm's flexibility to adjust its employment force resume in higher requirements on potential employees. The paper demonstrates the interaction between the legal structures and individual firm's decision making, herein hiring practices.