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Job mobility, wage dispersion, and technological change: An asymmetric information perspective

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  • Li, Jin

Abstract

This paper develops a model of job mobility and wage dispersion with asymmetric information. Contrary to existing models in which the superior information of current employers leads to market collapse, this model generates a unique equilibrium outcome in which (a) positive turnover exists and (b) identical workers may be paid differently. The model implies that, in the presence of technological change that is skill-biased and favors general skills over firm-specific skills, the wage distribution becomes more spread out (corresponding to greater inequality) and job mobility increases.

Suggested Citation

  • Li, Jin, 2013. "Job mobility, wage dispersion, and technological change: An asymmetric information perspective," European Economic Review, Elsevier, vol. 60(C), pages 105-126.
  • Handle: RePEc:eee:eecrev:v:60:y:2013:i:c:p:105-126 DOI: 10.1016/j.euroecorev.2013.01.008
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    References listed on IDEAS

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    Cited by:

    1. repec:bla:ecinqu:v:55:y:2017:i:1:p:223-236 is not listed on IDEAS
    2. Rao, Neel, 2015. "General training in labor markets: Common value auctions with unobservable investment," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 19-45.

    More about this item

    Keywords

    Asymmetric information; Inequality; Turnover;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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