A labor market with targeted wage offers
AbstractWe model a market for highly skilled workers, such as the academic job market. The outputs of ?rm-worker matches are heterogeneous and common knowledge. Wage setting is synchronous with search: ?rms simultaneously make one personalized offer each to the worker of their choice. With large frictions (delay costs), efficient coordination is not possible, but for small frictions efficient matching with Diamond-type monopsony wages is an equilibrium.
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Bibliographic InfoPaper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number 207.
Date of creation: 24 Jun 2011
Date of revision:
Other versions of this item:
- NEP-ALL-2011-07-02 (All new papers)
- NEP-DGE-2011-07-02 (Dynamic General Equilibrium)
- NEP-LAB-2011-07-02 (Labour Economics)
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