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On the efficiency of participation with vertically differentiated workers

Author

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  • Frédéric Gavrel

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this journal Albrecht et al. (2010) assume that the planner problem is constrained by participation decisions. When this constraint is relaxed participation is too high whereas market tightness is too low. Subsidizing non-participants improves market efficiency and reduces unemployment.

Suggested Citation

  • Frédéric Gavrel, 2011. "On the efficiency of participation with vertically differentiated workers," Post-Print halshs-00607253, HAL.
    • Handle: RePEc:hal:journl:halshs-00607253
    DOI: 10.1016/j.econlet.2011.03.035
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    Cited by:

    1. Frédéric Gavrel, 2015. "Participation, Recruitment Selection, and the Minimum Wage," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(4), pages 1281-1305, October.
    2. Flórez, Luz A., 2017. "Informal sector under saving: A positive analysis of labour market policies," Labour Economics, Elsevier, vol. 44(C), pages 13-26.
    3. Frédéric Gavrel, 2011. "Is the Formal Sector too Large or too Small? A Reexamination of Minimum Wages in Developing Countries," Economics Working Paper Archive (University of Rennes & University of Caen) 201108, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    4. Gavrel, Frédéric, 2012. "On the inefficiency of matching models of unemployment with heterogeneous workers and jobs when firms rank their applicants," European Economic Review, Elsevier, vol. 56(8), pages 1746-1758.
    5. David M. Arseneau & Brendan Epstein, 2018. "Efficient Mismatch," Finance and Economics Discussion Series 2018-037, Board of Governors of the Federal Reserve System (U.S.).
    6. Frederic Gavrel, 2013. "Capital mobility, search unemployment and labor market policies: The case of minimum wages," TEPP Working Paper 2013-02, TEPP.
    7. Griffy, Benjamin & Masters, Adrian, 2022. "Labor market policy in the presence of a participation externality," European Economic Review, Elsevier, vol. 144(C).
    8. Mangin, Sephorah & Julien, Benoît, 2021. "Efficiency in search and matching models: A generalized Hosios condition," Journal of Economic Theory, Elsevier, vol. 193(C).
    9. Julien, Benoît & Mangin, Sephorah, 2017. "Efficiency of job creation in a search and matching model with labor force participation," Economics Letters, Elsevier, vol. 150(C), pages 149-151.

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