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The quality effect of intra-firm bargaining with endogenous worker flows

Author

Listed:
  • Tristan-Pierre Maury
  • Fabien Tripier

    (EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne)

Abstract

The performance of the labor market depends not only on the quantity of jobs in the economy, but also on the quality of jobs. This paper proposes a new theoretical explanation of the job quality issue in search and matching models. We develop a matching and intra-firm bargaining model in which large firms hire workers and decide to destroy low-productivity job–worker matches. The sources of inefficiency include the well-known quantitative effect of intra-firm bargaining, namely, the excessive size of the firms concerned; and a new quality effect, namely, the poor quality of the job–worker matches selected by firms. © IAET

Suggested Citation

  • Tristan-Pierre Maury & Fabien Tripier, 2018. "The quality effect of intra-firm bargaining with endogenous worker flows," Post-Print hal-02877944, HAL.
    • Handle: RePEc:hal:journl:hal-02877944
    DOI: 10.1111/ijet.12164
    as

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