Constrainedly fair job assignments under minimum wages
A number of jobs are to be assigned to a greater number of workers. While having to abide by the law of minimum wages, firms must determine who should be assigned which job and at what salary. In such situations fair (envy-free) allocations usually fail to exist. To cope with this situation, this paper proposes a new concept of fairness, called constrained fairness. Among the set of constrainedly fair allocations, the so-called constrainedly fair and minimal allocations are of particular interest. The reason for this is that the salaries are not only compatible with the minimum wages; they are also optimal from the standpoint of cost-minimizing firms and the assignment of jobs is efficient from the viewpoint of workers. A convergent dynamic procedure that identifies constrainedly fair and minimal allocations is proposed. Furthermore, strategic properties of the mechanism are derived, and two notions of efficiency are evaluated.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Diamantaras, Dimitrios & Thomson, William, 1989.
"A refinement and extension of the no-envy concept,"
Elsevier, vol. 30(2), pages 103-107, August.
- Svensson, Lars-Gunnar, 1991. "Nash Implementation of Competitive Equilibria in a Model with Indivisible Goods," Econometrica, Econometric Society, vol. 59(3), pages 869-77, May.
- Claus-Jochen Haake & Matthias G. Raith & Francis Edward Su, 2002.
"Bidding for envy-freeness: A procedural approach to n-player fair-division problems,"
Social Choice and Welfare,
Springer;The Society for Social Choice and Welfare, vol. 19(4), pages 723-749.
- Claus-Jochen Haake & Matthias G. Raith & Francis Su, 2000. "Bidding for Envy-Freeness: A Procedural Approach to n-Player Fair Division Problems," Claremont Colleges Working Papers 2000-47, Claremont Colleges.
- Gabrielle Demange & Gale David & Marilda Sotomayor, 1986.
- Gabrielle Demange & David Gale, 1985.
"The Strategy Structure of Two Sided Matching Markets,"
- Demange, Gabrielle & Gale, David, 1985. "The Strategy Structure of Two-sided Matching Markets," Econometrica, Econometric Society, vol. 53(4), pages 873-88, July.
- Brams, S.J. & Kilgour, D.M., 1999.
"Competitive Fair Division,"
99-05, C.V. Starr Center for Applied Economics, New York University.
- Francis Su, . "Rental Harmony: Sperner's Lemma in Fair Division," Claremont Colleges Working Papers 1999-10, Claremont Colleges.
- Andersson, Tommy & Svensson, Lars-Gunnar, 2007.
"Weakly Fair Allocations and Strategy-Proofness,"
2007:3, Lund University, Department of Economics, revised 03 Jul 2007.
- Svensson, Lars-Gunnar, 1983. "Large Indivisibles: An Analysis with Respect to Price Equilibrium and Fairness," Econometrica, Econometric Society, vol. 51(4), pages 939-54, July.
- Flip Klijn, 2000. "An algorithm for envy-free allocations in an economy with indivisible objects and money," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(2), pages 201-215.
- Alkan, Ahmet & Demange, Gabrielle & Gale, David, 1991. "Fair Allocation of Indivisible Goods and Criteria of Justice," Econometrica, Econometric Society, vol. 59(4), pages 1023-39, July.
- Crawford, Vincent P & Knoer, Elsie Marie, 1981. "Job Matching with Heterogeneous Firms and Workers," Econometrica, Econometric Society, vol. 49(2), pages 437-50, March.
- Tadenuma, Koichi & Thomson, William, 1991. "No-Envy and Consistency in Economies with Indivisible Goods," Econometrica, Econometric Society, vol. 59(6), pages 1755-67, November.
When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:68:y:2010:i:2:p:428-442. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.