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Efficiency in a search and matching model with endogenous participation

  • Albrecht, James
  • Navarro, Lucas
  • Vroman, Susan

We show that in a search/matching model with endogenous participation in which workers are heterogeneous with respect to market productivity, satisfying the Hosios rule leads to excessive vacancy creation.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4XBG179-3/2/b7b3f3c33c30eb69d59240ed3d43a30d
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 106 (2010)
Issue (Month): 1 (January)
Pages: 48-50

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Handle: RePEc:eee:ecolet:v:106:y:2010:i:1:p:48-50
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Hosios, Arthur J, 1990. "On the Efficiency of Matching and Related Models of Search and Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 57(2), pages 279-98, April.
  2. James Albrecht & Lucas Navarro & Susan Vroman, 2008. "The Effects of Labour Market Policies in an Economy with an Informal Sector," ILADES-Georgetown University Working Papers inv208, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
  3. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, June.
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