Advanced Search
MyIDEAS: Login

Wage Bargaining in a Multiple Application Search Model with Recall

Contents:

Author Info

  • Lari Arthur Viianto

    ()
    (Department of Economics and Finance, Universidad de Guanajuato)

Abstract

In this paper I extend the multiple application urn-ball game structure, introduced by Gautier and Moraga-Gonzalez (2004) and Albrecht, Gautier, and Vroman (2006), to an scenario where firms can, after a rejection, make additional wage offers. This expands the game structure from a one-shot set up to a sequential game. A firm, after being rejected by an applicant, can choose another applicant to make him a new wage o¤er. This possibility gives firms an outside option after a rejection. This increases the bargaining power of firms, implying a change in their wage offer behavior. The resulting wage distribution is hump-shaped with the density of wage offers concentrated on central values, rather than in extreme values.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://economia.ugto.org/WorkingPapers/EC201001.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Universidad de Guanajuato, Department of Economics and Finance in its series Department of Economics and Finance Working Papers with number EC201001.

as in new window
Length: 33 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:gua:wpaper:ec201001

Contact details of provider:
Postal: UCEA-Campus Marfil, Fracc. I, El Establo, Guanajuato GTO 36250
Phone: [+52 473] 735 2925 x-2925
Fax: [+52 473] 735 2925 x-2925
Email:
Web page: http://economia.ugto.org/
More information through EDIRC

Related research

Keywords: Matching; Labor Market; Multiple application; Wage distribution;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Gautier, Pieter & Moraga-González, José L., 2004. "Strategic Wage Setting and Coordination Frictions with Multiple Applications," IZA Discussion Papers 1260, Institute for the Study of Labor (IZA).
  2. Philipp Kircher, 2009. "Efficiency of Simultaneous Search," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 861-913, October.
  3. Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, vol. 89(356), pages 818-33, December.
  4. Montgomery, James D, 1991. "Equilibrium Wage Dispersion and Interindustry Wage Differentials," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 163-79, February.
  5. Peters, Michael, 1984. "Bertrand Equilibrium with Capacity Constraints and Restricted Mobility," Econometrica, Econometric Society, vol. 52(5), pages 1117-27, September.
  6. Barbara Petrongolo & Christopher A. Pissarides, 2000. "Looking Into the Black Box: A Survey of the Matching Function," CEP Discussion Papers dp0470, Centre for Economic Performance, LSE.
  7. Lang, Kevin, 1991. "Persistent Wage Dispersion and Involuntary Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 181-202, February.
  8. Blanchard, Olivier Jean & Diamond, Peter A, 1994. "Ranking, Unemployment Duration, and Wages," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 417-34, July.
  9. James Albrecht & Pieter A. Gautier & Susan Vroman, 2006. "Equilibrium Directed Search with Multiple Applications," Review of Economic Studies, Oxford University Press, vol. 73(4), pages 869-891.
  10. Marja-Liisa Halko & Klaus Kultti & and Juha Virrankoski, 2008. "Search Direction And Wage Dispersion," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(1), pages 111-134, 02.
  11. Butters, Gerard R, 1977. "Equilibrium Distributions of Sales and Advertising Prices," Review of Economic Studies, Wiley Blackwell, vol. 44(3), pages 465-91, October.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:gua:wpaper:ec201001. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luis Sanchez Mier).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.