Cost-of-Living Adjustment Clauses in Union Contracts: A Summary of Results
解释了美国各行业生活成本调整条款差异的原因，通过风险分担模型分析工资指数化、合同期限等特征，发现失业保险金水平同时影响裁员和COLA覆盖程度。
Our paper provides an explanation why cost-of-living adjustment (COLA) provisions and their characteristics vary widely across U.S. industries. We develop models of optimal risk sharing between a firm and union to investigate the determinants of a number of contract characteristics. These include the presence and degree of wage indexing, the magnitude of deferred noncontingent wage increases, contract duration, and the trade-off between temporary layoffs and wage indexing. Preliminary empirical tests of some of the implications of the model are described. One key finding is that the level of unemployment insurance benefits appears to influence the level of layoffs and the extent of COLA coverage simultaneously.