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Endogenous Labour Market Segmentation in a Matching Model

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  • Alan Manning

Abstract

This paper extends work by Burdett and Mortensen (1989) and Mortensen and Vishwanath (1991) and examines equilibria in a matching model with identical firms and workers in which employed as well as unemployed workers receive wage offers. It shows that there are generally a continuum of equilibria often of a form that resembles labour market segmentation in that there are some firms paying high wages and facing excess supply of labour and some firms paying low wages with an excess demand for labour. The implication of the model are explored.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0126.

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Date of creation: Mar 1993
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Handle: RePEc:cep:cepdps:dp0126

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Cited by:
  1. Gerard J. van den Berg, 1998. "Empirical Inference with Equilibrium Search Models of the Labor Market," Tinbergen Institute Discussion Papers 98-089/3, Tinbergen Institute.
  2. Gerard J. van den Berg, 2003. "Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1337-1357, November.
  3. Garcia-Perez, J.I., 1999. "Equilibrium Search Models: the Role of the Assumptions," Papers 9909, Centro de Estudios Monetarios Y Financieros-.

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