An Equilibrium Search Model When Firms Observe Workers' Employment Status
Abstract
This article considers an equilibrium search model, where firms post wages using information on workers' employment status. Earnings differentials between workers of different employment statuses are driven by firms' ability to discriminate workers' reservation wages. I study how these wage policies depend on firms' and workers' characteristics, and how these policies affect the wage distribution. The model delivers new predictions for the amount of wage dispersion that can be generated with search models and provides a better representation of the left tail of the wage distribution in the presence of a legal minimum wage than standard equilibrium search models. Copyright � (2009) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.Download Info
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Bibliographic Info
Article 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): 50 (2009)
Issue (Month): 2 (05)
Pages: 485-506
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Carlos Carrillo-Tudela & Leo Kaas, 2011.
"Wage Dispersion and Labor Turnover with Adverse Selection,"
CESifo Working Paper Series
3562, CESifo Group Munich.
- Carrillo-Tudela, Carlos & Kaas, Leo, 2011. "Wage Dispersion and Labor Turnover with Adverse Selection," IZA Discussion Papers 5936, Institute for the Study of Labor (IZA).
- Carlos Carrillo-Tudela & Leo Kaas, 2011. "Wage Dispersion and Labour Turnover with Adverse Selection," Working Paper Series of the Department of Economics, University of Konstanz 2011-29, Department of Economics, University of Konstanz.
- Leo Kaas & Carlos Carrillo-Tudela, 2011. "Wage Dispersion and Labor Turnover with Adverse Selection," 2011 Meeting Papers 1075, Society for Economic Dynamics.
- Giuseppe Moscarini & Fabien Postel-Vinay, 2010.
"Stochastic Search Equilibrium,"
Cowles Foundation Discussion Papers
1754, Cowles Foundation for Research in Economics, Yale University.
- Giuseppe Moscarini & Fabien Postel-Vinay, 2010. "Stochastic Search Equilibrium," Levine's Working Paper Archive 661465000000000001, David K. Levine.
- S. Nuray Akin & Brennan Platt, 2012.
"Running Out of Time: Limited Unemployment Benefits and Reservation Wages,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 149-170, April.
- S. Nuray Akin & Brennan Platt, 2011. "Code and data files for "Running Out of Time: Limited Unemployment Benefits and Reservation Wages"," Computer Codes 10-201, Review of Economic Dynamics.
- Wolthoff, Ronald P., 2011. "It's About Time: Implications of the Period Length in an Equilibrium Job Search Model," IZA Discussion Papers 6002, Institute for the Study of Labor (IZA).
- Tamas Papp, .
"Frictional wage dispersion with Bertrand competition: an assessment,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics.
- Tamas Papp, 2013. "Online Appendix to "Frictional wage dispersion with Bertrand competition: an assessment"," Technical Appendices 09-187, Review of Economic Dynamics.
- Ronald Wolthoff, 2013. "It's About Time: Implications of the Period Length in an Equilibrium Search Model," Working Papers tecipa-476, University of Toronto, Department of Economics.
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