Search Direction And Wage Dispersion
AbstractIn a directed search model, we allow the unemployed and the vacancies to choose whether to send or receive wage offers. This determines the market structure. There are several equilibria but a unique evolutionary stable one. Wage offers are made under incomplete information about the number of offers, and the equilibrium strategies involve mixing. This results in wage dispersion. We show that if the unemployment-vacancy ratio is close to unity, the stable equilibrium consists of two submarkets with opposite search directions. Otherwise, the long side of the market sends offers. The stable equilibrium is efficient, given the frictions. Copyright 2008 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.
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 Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
Volume (Year): 49 (2008)
Issue (Month): 1 (02)
Contact details of provider:
Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bruno Decreuse & André Zylberberg, 2011.
"Search Intensity, Directed Search And The Wage Distribution,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Bruno Decreuse & André Zylberberg, 2011. "Search Intensity, Directed Search, And The Wage Distribution," Journal of the European Economic Association, European Economic Association, vol. 9(6), pages 1168-1186, December.
- Yosuke Oda, 2008. "Note on the Determinants of Wage Dispersion," Discussion Papers in Economics and Business 08-37, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Manolis Galenianos & Philipp Kircher & Gabor Virag, 2011.
"Market power and efficiency in a search model,"
LSE Research Online Documents on Economics
29706, London School of Economics and Political Science, LSE Library.
- Philipp Kircher & Gabor Virag & Manolis Galenianos, 2009. "Market Power and Efficiency in a Search Model," 2009 Meeting Papers 519, Society for Economic Dynamics.
- Galenianos, Manolis & Kircher, Philipp & Virag, Gabor, 2009. "Market Power and Efficiency in a Search Model," MPRA Paper 17093, University Library of Munich, Germany.
- repec:gua:wpaper:ec201001 is not listed on IDEAS
- repec:hal:journl:halshs-00638150 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or ().
If references are entirely missing, you can add them using this form.