IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v68y2010i2p428-442.html
   My bibliography  Save this article

Constrainedly fair job assignments under minimum wages

Author

Listed:
  • Andersson, T.
  • Svensson, L.-G.
  • Yang, Z.

Abstract

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.

Suggested Citation

  • Andersson, T. & Svensson, L.-G. & Yang, Z., 2010. "Constrainedly fair job assignments under minimum wages," Games and Economic Behavior, Elsevier, vol. 68(2), pages 428-442, March.
    • Handle: RePEc:eee:gamebe:v:68:y:2010:i:2:p:428-442
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899-8256(09)00194-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tadenuma, Koichi & Thomson, William, 1991. "No-Envy and Consistency in Economies with Indivisible Goods," Econometrica, Econometric Society, vol. 59(6), pages 1755-1767, November.
    2. Crawford, Vincent P & Knoer, Elsie Marie, 1981. "Job Matching with Heterogeneous Firms and Workers," Econometrica, Econometric Society, vol. 49(2), pages 437-450, March.
    3. Demange, Gabrielle & Gale, David, 1985. "The Strategy Structure of Two-sided Matching Markets," Econometrica, Econometric Society, vol. 53(4), pages 873-888, July.
    4. 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.
    5. Svensson, Lars-Gunnar, 1983. "Large Indivisibles: An Analysis with Respect to Price Equilibrium and Fairness," Econometrica, Econometric Society, vol. 51(4), pages 939-954, July.
    6. Diamantaras, Dimitrios & Thomson, William, 1990. "A refinement and extension of the no-envy concept," Economics Letters, Elsevier, vol. 33(3), pages 217-222, July.
    7. Steven J. Brams & D. Marc Kilgour, 2001. "Competitive Fair Division," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 418-443, April.
    8. 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.
    9. Tommy Andersson & Lars-Gunnar Svensson, 2008. "Weakly fair allocations and strategy-proofness," Review of Economic Design, Springer;Society for Economic Design, vol. 11(4), pages 321-338, February.
    10. Demange, Gabrielle & Gale, David & Sotomayor, Marilda, 1986. "Multi-Item Auctions," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 863-872, August.
    11. Alkan, Ahmet & Demange, Gabrielle & Gale, David, 1991. "Fair Allocation of Indivisible Goods and Criteria of Justice," Econometrica, Econometric Society, vol. 59(4), pages 1023-1039, July.
    12. Svensson, Lars-Gunnar, 1991. "Nash Implementation of Competitive Equilibria in a Model with Indivisible Goods," Econometrica, Econometric Society, vol. 59(3), pages 869-877, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paula Jaramillo & Çaǧatay Kayı & Flip Klijn, 2014. "Asymmetrically fair rules for an indivisible good problem with a budget constraint," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(3), pages 603-633, October.
    2. , & , & ,, 2014. "Budget-balance, fairness and minimal manipulability," Theoretical Economics, Econometric Society, vol. 9(3), September.
    3. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 2, chapter 21, pages 393-506, Elsevier.
    4. Yao Cheng & Zaifu Yang, "undated". "Stable Matching Mechanisms under Distributional Constraints," Discussion Papers 23/03, Department of Economics, University of York.
    5. Yu Zhou & Shigehiro Serizawa, 2016. "Strategy-Proofness and Efficiency for Non-quasi-linear Common-Tiered-Object Preferences: Characterization of Minimum Price Rule," ISER Discussion Paper 0971, Institute of Social and Economic Research, Osaka University.
    6. Yao Cheng & Zaifu Yang, 2023. "Stable Matching Mechanisms under Distributional Constraints," Discussion Papers 23/05, Department of Economics, University of York.
    7. Zhou, Yu & Serizawa, Shigehiro, 2018. "Strategy-proofness and efficiency for non-quasi-linear and common-tiered-object preferences: Characterization of minimum price rule," Games and Economic Behavior, Elsevier, vol. 109(C), pages 327-363.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tommy Andersson & Christer Andersson, 2009. "Solving House Allocation Problems with Risk-Averse Agents," Computational Economics, Springer;Society for Computational Economics, vol. 33(4), pages 389-401, May.
    2. , & , & ,, 2014. "Budget-balance, fairness and minimal manipulability," Theoretical Economics, Econometric Society, vol. 9(3), September.
    3. Francisco Sánchez Sánchez, 2022. "Envy-Free Solutions to the Problem of Room Assignment and Rent Division," Group Decision and Negotiation, Springer, vol. 31(3), pages 703-721, June.
    4. Azacis, Helmuts, 2008. "Double implementation in a market for indivisible goods with a price constraint," Games and Economic Behavior, Elsevier, vol. 62(1), pages 140-154, January.
    5. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 2, chapter 21, pages 393-506, Elsevier.
    6. Atila Abdulkadiroğlu & Tayfun Sönmez & M. Utku Ünver, 2004. "Room assignment-rent division: A market approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 22(3), pages 515-538, June.
    7. , & ,, 2015. "Strategy-proofness and efficiency with non-quasi-linear preferences: a characterization of minimum price Walrasian rule," Theoretical Economics, Econometric Society, vol. 10(2), May.
    8. Tommy ANDERSSON & Lars EHLERS & Lars-Gunnar SVENSSON, 2014. "Transferring Ownership of Public Housing to Existing Tenants : A Mechanism Design Approach," Cahiers de recherche 09-2014, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    9. Haake, Claus-Jochen & Raith, Matthias G. & Su, Francis Edward, 2017. "Bidding for envy freeness," Center for Mathematical Economics Working Papers 311, Center for Mathematical Economics, Bielefeld University.
    10. Ning Sun & Zaifu Yang, 2009. "Strategy Proof And Privacy Preserving Fair Allocation Mechanism," The Japanese Economic Review, Japanese Economic Association, vol. 60(2), pages 143-151, June.
    11. Andersson, Tommy & Svensson, Lars-Gunnar, 2008. "Non-manipulable assignment of individuals to positions revisited," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 350-354, November.
    12. Tommy Andersson & Lars-Gunnar Svensson, 2008. "Weakly fair allocations and strategy-proofness," Review of Economic Design, Springer;Society for Economic Design, vol. 11(4), pages 321-338, February.
    13. Svensson, Lars-Gunnar, 2004. "Strategy-Proof and Fair Wages," Working Papers 2004:8, Lund University, Department of Economics.
    14. Tommy ANDERSSON & Lars EHLERS, 2013. "An Algorithm for Identifying Agent-k-Linked Allocations in Economies with Indivisibilities," Cahiers de recherche 17-2013, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    15. ANDERSSON, Tommy & EHLERS, Lars & LARS-GUNNAR, Svensson, 2014. "Transferring ownership of public housing to existing tenants: a mechanism design," Cahiers de recherche 2014-05, Universite de Montreal, Departement de sciences economiques.
    16. Meertens, Marc & Potters, Jos & Reijnierse, Hans, 2002. "Envy-free and Pareto efficient allocations in economies with indivisible goods and money," Mathematical Social Sciences, Elsevier, vol. 44(3), pages 223-233, December.
    17. Andersson, Tommy & Andersson, Christer & Talman, Adolphus Johannes Jan, 2010. "Sets in Excess Demand in Ascending Auctions with Unit-Demand Bidders," Working Papers 2010:15, Lund University, Department of Economics, revised 28 Jun 2012.
    18. Andersson, Tommy & Gudmundsson, Jens & Talman, Dolf & Yang, Zaifu, 2014. "A competitive partnership formation process," Games and Economic Behavior, Elsevier, vol. 86(C), pages 165-177.
    19. Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2014. "Least manipulable Envy-free rules in economies with indivisibilities," Mathematical Social Sciences, Elsevier, vol. 69(C), pages 43-49.
    20. Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2016. "Transferring ownership of public housing to existing tenants: A market design approach," Journal of Economic Theory, Elsevier, vol. 165(C), pages 643-671.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.