@article{2c6ec64aee45490686cf717d72bf5722,
title = "Reputation and earnings dynamics",
abstract = "Cyclical patterns in earnings can arise when contracts between firms and their workers are incomplete, and when workers cannot borrow or lend so as to smooth their consumption. Effort cycles generate occasional large changes in earnings. These large changes are transitory, consistent with recent empirical findings.",
keywords = "Career concerns, Earnings dynamics, Endogenous fluctuations, Reputation",
author = "Boyan Jovanovic and Julien Prat",
note = "Funding Information: We are grateful to Sai Ma and Hargungheet Singh for excellent research assistance and to Jess Benhabib, Emmanuel Farhi, Jean-Michel Grandmont, Fatih Guvenen, Dimitris Papanikolaou, David Pearce and Gianlua Violante for their insightful suggestions. We thank Fatih Guvenen for providing us with data and participants of the SED 2015, Barcelona GSE summer forum 2015, NASM 2016, and Minnesota Macro 2016 for their comments. Boyan Jovanovic thanks the NSF for its 2015-2018 grant SES-1523980 for the project ?Reputations in Macroeconomics.? Julien Prat acknowledges the support of the Investissements d'Avenir grant (ANR-11-IDEX-0003/Labex Ecodec/ANR-11-LABX-0047). Funding Information: We are grateful to Sai Ma and Hargungheet Singh for excellent research assistance and to Jess Benhabib, Emmanuel Farhi, Jean-Michel Grandmont, Fatih Guvenen, Dimitris Papanikolaou, David Pearce and Gianlua Violante for their insightful suggestions. We thank Fatih Guvenen for providing us with data and participants of the SED 2015, Barcelona GSE summer forum 2015, NASM 2016, and Minnesota Macro 2016 for their comments. Boyan Jovanovic thanks the NSF for its 2015-2018 grant SES-1523980 for the project “Reputations in Macroeconomics.” Julien Prat acknowledges the support of the Investissements d'Avenir grant ( ANR-11-IDEX-0003/Labex Ecodec/ANR-11-LABX-0047 ). Publisher Copyright: {\textcopyright} 2020 Elsevier Inc.",
year = "2021",
month = jan,
doi = "10.1016/j.jet.2020.105158",
language = "English (US)",
volume = "191",
journal = "Journal of Economic Theory",
issn = "0022-0531",
publisher = "Academic Press Inc.",
}