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The Effects of Firm Optimizing Behaviour in Matching Models

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  • Stern, Steven

Abstract

This paper considers a matching model of which the search behavior of Jovanovic (1979) and Albrecht and Jovanovic (1984) are special cases. The nature of the generality is that each unemployed worker has more information than firms about his average productivity. This results in wage offers falling over the length of an unemployment spell because a long spell is a signal of lower than average productivity. The results of the paper are similar to the scarring effect of Heckman and Borjas (1980) and Greenwald (1986) and the discouraged worker effect of Schweitzer and Smith (1974). Copyright 1990 by The Review of Economic Studies Limited.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Economic Studies.

Volume (Year): 57 (1990)
Issue (Month): 4 (October)
Pages: 647-60

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Handle: RePEc:bla:restud:v:57:y:1990:i:4:p:647-60

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Cited by:
  1. Simon D Woodcock, 2002. "Agent Heterogeneity and Learning: An Application to Labor Markets," Longitudinal Employer-Household Dynamics Technical Papers 2002-20, Center for Economic Studies, U.S. Census Bureau.
  2. Arnab Bhattacharjee & Jean Bonnet & Nicolas Le Pape & RĂ©gis Renault, 2006. "Inferring the unobserved human capital of entrepreneurs," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 200603, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  3. Temel, Tugrul, 2011. "The formation of offer prices in farmland markets: A hedonic price approach," MPRA Paper 31921, University Library of Munich, Germany.
  4. Woodcock Simon D, 2010. "Heterogeneity and Learning in Labor Markets," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-69, September.
  5. Simon D Woodcock, 2002. "Modeling Labor Markets with Heterogeneous Agents and Matches," Longitudinal Employer-Household Dynamics Technical Papers 2002-19, Center for Economic Studies, U.S. Census Bureau.
  6. repec:tep:teppwp:wp1009 is not listed on IDEAS

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