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Dual Labor Markets, Efficiency Wages, and Search

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  • Albrecht, James W
  • Vroman, Susan B

Abstract

This article presents an equilibrium model of a dual labor market. Firms are assumed to be identical ex ante and dualism arises endogenously. The dual labor market outcome is supported by efficiency wage and search considerations. Firms choose wage/effort requirement packages optimally given optimal search and effort choice by workers, and vice versa. The authors prove existence and investigate the occurence and nature of dual labor market equilibria. Copyright 1992 by University of Chicago Press.

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File URL: http://links.jstor.org/sici?sici=0734-306X%28199210%2910%3A4%3C438%3ADLMEWA%3E2.0.CO%3B2-T&origin=repec
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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 10 (1992)
Issue (Month): 4 (October)
Pages: 438-61

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Handle: RePEc:ucp:jlabec:v:10:y:1992:i:4:p:438-61

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  1. Burdett, Kenneth & Mortensen, Dale T, 1980. "Search, Layoffs, and Labor Market Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 88(4), pages 652-72, August.
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Cited by:
  1. Mohamed Jellal & Francois-Charles Wolff, 2003. "Dual Labor Markets And Strategic Efficiency Wage," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 99-112.
  2. Jellal, Mohamed & Zenou, Yves, 1999. "Efficiency wages and the quality of job matching," Journal of Economic Behavior & Organization, Elsevier, vol. 39(2), pages 201-217, June.
  3. Arai, Kazuhiro, 1997. "Cooperation, job security, and wages in a dual labor market equilibrium," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 26(1), pages 39-57.
  4. Smith, Tony E. & Zenou, Yves, 1997. "Dual Labor Markets, Urban Unemployment, and Multicentric Cities," Journal of Economic Theory, Elsevier, vol. 76(1), pages 185-214, September.
  5. Grassi, Emanuele & Di Cintio, Marco, 2011. "Wage incentive profiles in dual labour markets," MPRA Paper 32266, University Library of Munich, Germany.
  6. Wauthy, Xavier & Zenou, Yves, 1997. "Efficiency Wages, Labor Heterogeneity and the Financing of the Training Cost," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1997022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  7. Schlicht, Ekkehart, . "Job Rents in a Stylized Labor Market," Chapters in Economics, University of Munich, Department of Economics.
  8. repec:hal:cesptp:hal-00134146 is not listed on IDEAS

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