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Fixed or Flexible? Wage-setting in Search Equilibrium Author info | Abstract | Publisher info | Download info | Related research | Statistics Tore Ellingsen
Asa Rosen
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Why do some vacancies offer a posted wage whereas others offer a negotiable wage? The paper endogenizes the choice of wage policy in a standard sequential search model with heterogeneous workers. In particular, we identify circumstances such that there exists an equilibrium in which all firms negotiate wages. We find that this equilibrium exists if and only if the labour market is sufficiently tight and worker heterogeneity is sufficiently large. Copyright The London School of Economics and Political Science 2003.
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Article provided by London School of Economics and Political Science in its journal Economica .
Volume (Year): 70 (2003)
Issue (Month): 278 (05)
Pages: 233-250
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Handle: RePEc:bla:econom:v:70:y:2003:i:278:p:233-250Contact details of provider: Postal: Houghton Street, London WC2A 2AE Phone: +44 (020) 7405 7686 Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427 More information through EDIRC
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Keywords: Other versions of this item:
Paper Ellingsen, Tore & Rosén, Åsa, 1997.
"Fixed or Flexible? Wage Setting in Search Equilibrium ,"
Working Paper Series in Economics and Finance
185, Stockholm School of Economics.
[Downloadable!] Ellingsen, T. & Rosen, A., 1997.
"Fixed or Flexible? Wage Setting in Search Equilibrium ,"
Papers
1997-17, Uppsala - Working Paper Series.
Ellingsen, Tore & Rosén, Åsa, 1997.
"Fixed or Flexible? Wage Setting in Search Equilibrium ,"
Working Paper Series
1997:17, Uppsala University, Department of Economics.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: repec:fth:harver:1517 is not listed on IDEAS
Bester, Helmut, 1994.
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Other versions: Peter Diamond, 1985.
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Other versions: Lang, Kevin, 1991.
"Persistent Wage Dispersion and Involuntary Unemployment ,"
The Quarterly Journal of Economics ,
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Diamond, Peter A, 1982.
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Dale T. Mortensen, 1979.
"The Matching Process as a Non-Cooperative/Bargaining Game ,"
Discussion Papers
384, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Diamond, Peter A., 1971.
"A model of price adjustment ,"
Journal of Economic Theory ,
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Dale T. Mortensen, 1988.
"Equilibrium Wage Distrihutions: A Synthesis ,"
Discussion Papers
811, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
[Downloadable!]
Ellingsen, Tore & Rosen, Åsa, 1994.
"Skill or Luck? Search Frictions and Wage Differentials ,"
Working Paper Series in Economics and Finance
1, Stockholm School of Economics.
[Downloadable!]
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Jochen Michaelis & Angela Birk, 2004.
"Employment- and Growth Effects of Tax Reforms ,"
Discussion Papers in Economics
58/04, University of Kassel, Institute of Economics.
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Angela Birk & Jochen Michaelis, 2004.
"Employment- and Growth Effects of Tax Reforms ,"
cege â Center for European, Governance and Economic Development Research Discussion Papers
29, cege – Center for European, Governance and Economic Development Research, University of Goettingen (Germany)..
[Downloadable!] Michaelis, Jochen & Birk, Angela, 2004.
"Employment and Growth Effects of Tax Reforms ,"
Discussion Paper Series
26275, Hamburg Institute of International Economics.
[Downloadable!] Michaelis, Jochen & Birk, Angela, 2006.
"Employment- and growth effects of tax reforms ,"
Economic Modelling ,
Elsevier, vol. 23(6), pages 909-925, December.
[Downloadable!] (restricted) Gerard J. van den Berg, 1999.
"Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies ,"
Tinbergen Institute Discussion Papers
99-085/3, Tinbergen Institute.
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Camera, G. & Delacroix, A., 2001.
"Bargaining or Price Posting? ,"
Purdue University Economics Working Papers
1147, Purdue University, Department of Economics.
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A. Masters & A. Muthoo, 2003.
"Ex Ante Price Commitment with Renegotiation in a Dynamic Market ,"
Economics Discussion Papers
555, University of Essex, Department of Economics.
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Michelacci, Claudio & Suarez, Javier, 2002.
"Incomplete Wage Posting ,"
CEPR Discussion Papers
3658, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Berg, Gerard J. van den, 1999.
"Multiple equilibria and minimum wages in labor markets with informational frictions and heterogeneous production technologies ,"
Serie Research Memoranda
0044, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
[Downloadable!]
Other versions:
van den Berg, Gerard J., 2003.
"Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies ,"
IZA Discussion Papers
806, Institute for the Study of Labor (IZA).
[Downloadable!] van den Berg, Gerard J, 2003.
"Multiple Equilibria and Minimum Wages in Labour Markets with Informational Frictions and Heterogenous Production Technologies ,"
CEPR Discussion Papers
3977, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Gerard J. van den Berg, 2003.
"Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies ,"
International Economic Review ,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1337-1357, November.
[Downloadable!] (restricted)
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