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Demand uncertainty mismatch and (un)employment

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Author Info

  • Jellal, Mohamed
  • Thisse, Jacques-François
  • Zenou, Yves

Abstract

Heterogeneous firms facing demand-induced price fluctuations imperfectly compete for heterogeneous workers. It is shown that unemployment may arise in equilibrium because of the combination of uncertainty on product price and mismatch between workers’ skills and firms’ job requirements.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38437.

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Date of creation: 2005
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Handle: RePEc:pra:mprapa:38437

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Related research

Keywords: Skill mismatch; Price uncertainty; Unemployment equilibrium;

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References

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  1. Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
  2. Sherwin Rosen, 1985. "Implicit Contracts: A Survey," NBER Working Papers 1635, National Bureau of Economic Research, Inc.
  3. Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
  4. HAMILTON, Jonathan & THISSE, Jacques-François & ZENOU, Yves, . "Wage competition with heterogeneous workers and firms," CORE Discussion Papers RP -1463, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Lars Ljungqvist & Thomas J. Sargent, 1995. "The European unemployment dilemma," Working Paper Series, Macroeconomic Issues 95-17, Federal Reserve Bank of Chicago.
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Citations

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Cited by:
  1. Laurence Rioux, 2000. "Human Capital, Local Labor Markets and Regional Interaction," Econometric Society World Congress 2000 Contributed Papers 1740, Econometric Society.
  2. Jellal, Mohamed, 2012. "Maroc éducation et emploi une analyse théorique
    [Morocco education and employment a theory]
    ," MPRA Paper 38465, University Library of Munich, Germany.
  3. Wauthy, Xavier & Zenou, Yves, 2001. "How Does Imperfect Competition in the Labor Market Affect Unemployment Policies?," IZA Discussion Papers 340, Institute for the Study of Labor (IZA).
  4. 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.
  5. Elias Oikarinen, 2009. "Dynamic linkages between housing and lot prices: Empirical evidence from Helsinki," Discussion Papers 53, Aboa Centre for Economics.

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