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The Effects of Firm Optimizing Behaviour in Matching Models

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Author Info
Stern, Steven

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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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Publisher Info
Article provided by Blackwell Publishing 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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  1. Simon D Woodcock, 2002. "Modeling Labor Markets with Heterogeneous Agents and Matches," Technical Papers 2002-19, Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  2. Simon D Woodcock, 2002. "Agent Heterogeneity and Learning: An Application to Labor Markets," Technical Papers 2002-20, Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  3. Arnab Bhattacharjee (University of-St Andrews) & Jean Bonnet (CREM – CNRS) & Nicolas Le Pape (CREM – CNRS) & Régis Renault (THEMA – CNRS), 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. [Downloadable!]
  4. Simon D. Woodcock, 2005. "Heterogeneity and Learning in Labor Markets," Labor and Demography 0511012, EconWPA. [Downloadable!]
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