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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 12 (2005)
Issue (Month): 2 (April)
Contact details of provider:
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
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.:
- Ching-to Albert Ma & Andrew M. Weiss, 1990.
"A Signaling Theory of Unemployment,"
NBER Working Papers
3565, National Bureau of Economic Research, Inc.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
- James B. Rebitzer & Lowell J. Taylor, 1991.
"The Consequences of Minimum Wage Laws: Some New Theoretical Ideas,"
NBER Working Papers
3877, National Bureau of Economic Research, Inc.
- Rebitzer, James B. & Taylor, Lowell J., 1995. "The consequences of minimum wage laws Some new theoretical ideas," Journal of Public Economics, Elsevier, vol. 56(2), pages 245-255, February.
- Wauthy, Xavier & Zenou, Yves, 2001.
"How Does Imperfect Competition in the Labor Market Affect Unemployment Policies?,"
IZA Discussion Papers
340, Institute for the Study of Labor (IZA).
- Wauthy, Xavier & Zenou, Yves, 2002. " How Does Imperfect Competition in the Labor Market Affect Unemployment Policies?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 417-36.
- Wauthy, Xavier & Zenou, Yves, 2001. "How Does Imperfect Competition in the Labour Market Affect Unemployment Policies?," CEPR Discussion Papers 2902, C.E.P.R. Discussion Papers.
- WAUTHY, Xavier & ZENOU, Yves, . "How does imperfect competition in the labor market affect unemployment policies," CORE Discussion Papers RP -1558, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gottfries, Nils & McCormick, Barry, 1995.
"Discrimination and open unemployment in a segmented labour market,"
European Economic Review,
Elsevier, vol. 39(1), pages 1-15, January.
- Gottfries, N. & McCormick, B., 1993. "Discrimination and open unemployment in a segmented labour market," Discussion Paper Series In Economics And Econometrics 9320, Economics Division, School of Social Sciences, University of Southampton.
- Gottfries, N. & Mccormick, B., 1990. "Discrimination And Open Unemployment In A Segmented Labour Market," Papers 460, Stockholm - International Economic Studies.
- THISSE, Jacques-François & ZENOU, Yves, .
"Skill mismatch and unemployment,"
CORE Discussion Papers RP
-1480, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hamilton, Jonathan & Thisse, Jacques-Francois & Zenou, Yves, 2000.
"Wage Competition with Heterogeneous Workers and Firms,"
Journal of Labor Economics,
University of Chicago Press, vol. 18(3), pages 453-72, July.
- Hamilton, Jonathan & Thisse, Jacques-François & Zenou, Yves, 1999. "Wage Competition with Heterogeneous Workers and Firms," CEPR Discussion Papers 2141, C.E.P.R. Discussion Papers.
- HAMILTON, Jonathan & THISSE, Jacques-François & ZENOU, Yves, . "Wage competition with heterogeneous workers and firms," CORE Discussion Papers RP -1463, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Simon, Leo K, 1987. "Games with Discontinuous Payoffs," Review of Economic Studies, Wiley Blackwell, vol. 54(4), pages 569-97, October.
- Weiss, Andrew W, 1980. "Job Queues and Layoffs in Labor Markets with Flexible Wages," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 526-38, June.
- Philip J. Reny, 1999. "On the Existence of Pure and Mixed Strategy Nash Equilibria in Discontinuous Games," Econometrica, Econometric Society, vol. 67(5), pages 1029-1056, September.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June.
- Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
If references are entirely missing, you can add them using this form.