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Measuring technical progress in matching models of the labour market

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  • Kevin Fox

Abstract

Technical Progress in matching models of the labour market has not received serious attention. This article examines the impact on the results of these models when an attempt is made to allow time to enter in a realistic fashion, and finds that recently published results on the possibility of multiple equilibria are overturned. Also, different parametric representations of the matching technology are compared, with problems of more general forms not satisfying regularity conditions being identified. While the possibility of Pareto-improving government intervention due to multiple equilibria arising out of increasing returns to scale cannot be supported, the results suggest a role for government intervention in the labour market.

Suggested Citation

  • Kevin Fox, 2002. "Measuring technical progress in matching models of the labour market," Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 741-748.
  • Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:741-748
    DOI: 10.1080/00036840110054017
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    Cited by:

    1. Burgess, Simon & Profit, Stefan, 2001. "Externalities in the matching of workers and firms in ritain," Labour Economics, Elsevier, vol. 8(3), pages 313-333, June.
    2. Profit, Stefan, 1997. "Twin peaks in regional unemployment and returns to scale in job-matching in the Czech Republic," SFB 373 Discussion Papers 1997,63, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    3. Meng, Xin & Junankar, Pramod N. (Raja) & Kapuscinski, Cezary A., 2004. "Job Mobility along the Technological Ladder: A Case Study of Australia," IZA Discussion Papers 1169, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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