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Efficiency in a search and matching model with endogenous labor participation and different skill groups

Author

Listed:
  • Makoto Masui

    (Soka University)

Abstract

This study addresses endogenous labor force participation based on a search and matching model with workers' productivity dispersion within different skill groups. I show that equilibrium vacancy creation can be both excessive and insufficient from the viewpoint of economic efficiency, depending on the relative share of workers in a high-skill group.

Suggested Citation

  • Makoto Masui, 2020. "Efficiency in a search and matching model with endogenous labor participation and different skill groups," Economics Bulletin, AccessEcon, vol. 40(4), pages 2648-2653.
    • Handle: RePEc:ebl:ecbull:eb-20-00677
    as

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    References listed on IDEAS

    as
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    3. Albrecht, James & Navarro, Lucas & Vroman, Susan, 2010. "Efficiency in a search and matching model with endogenous participation," Economics Letters, Elsevier, vol. 106(1), pages 48-50, January.
    4. Brigitte Baalen & Tobias Müller, 2014. "Social welfare effects of tax-benefit reform under endogenous participation and unemployment: an ordinal approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(2), pages 198-227, April.
    5. Arthur J. Hosios, 1990. "On The Efficiency of Matching and Related Models of Search and Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(2), pages 279-298.
    6. Masters, Adrian, 2015. "Efficiency in a search and matching model with participation policy," Economics Letters, Elsevier, vol. 134(C), pages 111-113.
    7. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Search; Matching; Participation; Efficiency; Skill groups;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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