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Dual Labor Markets, Efficiency Wages, and Search

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Author Info

  • Albrecht, James W.

    (Georgetown University)

  • Vroman, Susan B.

    (Georgetown University)

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 Research Institute of Industrial Economics in its series Working Paper Series with number 267.

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Length: 28 pages
Date of creation: Nov 1990
Date of revision:
Handle: RePEc:hhs:iuiwop:0267

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Related research

Keywords: Efficiency wages; Search theory; Dual labor market;

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References

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  1. Ken Burdett & Dale T. Mortensen, 1979. "Search, Layoffs, and Labor Market Equilibrium," Discussion Papers 380, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Citations

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Cited by:
  1. Jellal, Mohamed & wolff, François charles, 2003. "Dual labor market and strategic efficiency wage," MPRA Paper 38395, University Library of Munich, Germany.
  2. Marco Di Cintio & Emanuele Grassi, 2014. "Wage Incentive Profiles in Dual Labor Markets," Working Papers 2014.22, Fondazione Eni Enrico Mattei.
  3. 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.
  4. SMITH, Tony E. & ZENOU, Yves, 1996. "Dual Labor Markets, Urban Unemployment and Multicentric Cities," CORE Discussion Papers 1996018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. WAUTHY, Xavier & ZENOU, Yves, 1997. "Efficiency wages, labor heterogeneity and the fInancing of the training cost," CORE Discussion Papers 1997072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Schlicht, Ekkehart, . "Job Rents in a Stylized Labor Market," Chapters in Economics, University of Munich, Department of Economics.
  7. Francesco De Palma & Thomas Seegmuller, 2005. "Dual Labor Market and Endogenous Fluctuations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00194165, HAL.
  8. repec:hal:cesptp:hal-00134146 is not listed on IDEAS
  9. 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.

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