A way of explaining unemployment through a wage-setting game
AbstractWe investigate a duopsonistic wage-setting game in which the firms have a limited number of workplaces. We assume that the firms have heterogeneous productivity, that there are two types of workers with different reservation wages and that a worker's productivity is independent of his type. We show that equilibrium unemployment arises in the wage-setting game under certain conditions, although the efficient allocation of workers would result in full employment.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 12 (2005)
Issue (Month): 2 (April)
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Web page: http://www.elsevier.com/locate/labeco
Other versions of this item:
- Attila Tasnadi, 2003. "A way of explaining unemployment through a wage-setting game," Bonn Econ Discussion Papers bgse14_2003, University of Bonn, Germany.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
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