Two-Sided Search and Temporary Employment
The objective of this paper is to model explicitly the possibility to form temporary matching in a model of two-sided search. The agents (workers and employers) differ by their human quality endowment. In a search equilibrium agents form subintervals and are only matched to agents within their class. The introduction of a temporary market can have a positive impact on unemployment, but it may have a negative impact on low-skilled agents' utility. When a delay cost is introduced, this negative impact can be reduced especially if an education policy is implemented to decrease the heterogeneity of the human capital.
|Date of creation:||01 May 2000|
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DELTA Working Papers
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- Etienne Wasmer, 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," Working Papers 97-15, Centre de Recherche en Economie et Statistique.
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"Two-Sided Search, Marriages and Matchmakers,"
CORE Discussion Papers
1994028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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"Are the unemployed unemployable?,"
European Economic Review,
Elsevier, vol. 40(7), pages 1501-1519, August.
- Gilles Saint-Paul, 1994. "Are the Unemployed Unemployable?," IMF Working Papers 94/64, International Monetary Fund.
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- Bentolila, Samuel & Saint-Paul, Gilles, 1992. "The macroeconomic impact of flexible labor contracts, with an application to Spain," European Economic Review, Elsevier, vol. 36(5), pages 1013-1047, June.
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