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Dual Labour Markets, Efficiency Wages, and Search

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Author Info

  • Albrecht, J.W.
  • Vroman, S.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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Bibliographic Info

Paper provided by Stockholm - International Economic Studies in its series Papers with number 492.

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Length: 25 pages
Date of creation: 1991
Date of revision:
Handle: RePEc:fth:stocin:492

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Keywords: enterprises ; skilled workers ; economic models ; economic equilibrium;

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References

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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. 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).
  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. repec:hal:cesptp:halshs-00194165 is not listed on IDEAS
  4. Smith, Tony E & Zenou, Yves, 1997. "Dual Labour Markets, Urban Unemployment and Multicentric Cities," CEPR Discussion Papers 1566, C.E.P.R. Discussion Papers.
  5. Schlicht, Ekkehart, . "Job Rents in a Stylized Labor Market," Chapters in Economics, University of Munich, Department of Economics.
  6. repec:hal:cesptp:hal-00134146 is not listed on IDEAS
  7. 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.
  8. De Palma, Francesco & Seegmuller, Thomas, 2005. "Dual Labor Market And Endogenous Fluctuations," Macroeconomic Dynamics, Cambridge University Press, vol. 9(03), pages 398-411, June.
  9. Jellal, Mohamed & wolff, François charles, 2003. "Dual labor market and strategic efficiency wage," MPRA Paper 38395, University Library of Munich, Germany.
  10. Grassi, Emanuele & Di Cintio, Marco, 2011. "Wage incentive profiles in dual labour markets," MPRA Paper 32266, University Library of Munich, Germany.

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