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A Matching Model with Wage Announcement

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  • Espen R. Moen

Abstract

I study a matching model where heterogeneous firms publicly announce wage offers. A Walrasian type of equilibrium is derived, and the concept of stability used to restrict the set of equilibria. It is shown that the equilibrium is always separable, with high productivity firms announcing strictly higher wages than low productivity firms. Furthermore, it is shown that the equilibrium is constrained efficient.

Suggested Citation

  • Espen R. Moen, 1995. "A Matching Model with Wage Announcement," STICERD - Theoretical Economics Paper Series 280, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stitep:280
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    Cited by:

    1. Espen R. Moen & Åsa Rosén, 2004. "Does Poaching Distort Training?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(4), pages 1143-1162.

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