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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- Wasmer, Etienne, 1999. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," Economic Journal, Royal Economic Society, vol. 109(457), pages 349-371, July.
- E Wasmer, 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," CEP Discussion Papers dp0369, Centre for Economic Performance, LSE.
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- Ken Burdett & Melvyn G. Coles, 1997. "Marriage and Class," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 141-168. Full references (including those not matched with items on IDEAS)
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