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Work Hour Mismatch and On-the-job Search

  • Keisuke Kawata

    (Graduate School for International Development and Cooperation)

This paper explores an on-the-job search model with wage bargaining and mismatch. It considers two types of jobs and workers, and the instantaneous value of the job-worker match depends on their type. The most important assumption is that while the job type is fixed throughout its life, the worker type changes in accordance with a stochastic process. This paper shows that although the workers turnover decision is privately efficient, this decision may be socially inefficient because of the hold-up problem.

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Paper provided by Hiroshima University, Graduate School for International Development and Cooperation (IDEC) in its series IDEC DP2 Series with number 3-6.

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Length: 30 pages
Date of creation: Oct 2013
Date of revision:
Handle: RePEc:hir:idecdp:3-6
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  1. Cahuc, Pierre & Postel-Vinay, Fabien & Robin, Jean-Marc, 2003. "Wage Bargaining with On-The-Job Search: Theory and Evidence," CEPR Discussion Papers 4154, C.E.P.R. Discussion Papers.
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  18. Kudoh, Noritaka & Sasaki, Masaru, 2009. "Employment and hours of work," Discussion paper series. A 204, Graduate School of Economics and Business Administration, Hokkaido University.
  19. Frédéric Gavrel & Isabelle Lebon & Thérèse Rebière, 2012. "Minimum wage, on-the-job search and employment : On the sectoral and aggregate equilibrium effect of the mandatory minimum wage," Post-Print halshs-00742749, HAL.
  20. Dickens, William T & Lundberg, Shelly J, 1993. "Hours Restrictions and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 169-92, February.
  21. Keisuke Kawata & Yasuhiro Sato, 2011. "On-the-job search in urban areas," Discussion Papers in Economics and Business 11-03, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  22. Blundell, Richard & Brewer, Mike & Francesconi, Marco, 2007. "Job Changes and Hours Changes: Understanding the Path of Labour Supply Adjustment," IZA Discussion Papers 3044, Institute for the Study of Labor (IZA).
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  24. Fabien Postel-Vinay & Jean-Marc Robin, 2004. "To Match or Not to Match? Optimal Wage Policy With Endogenous Worker Search Intensity," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(2), pages 297-330, April.
  25. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
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  34. Bandopadhyay, Titas Kumar & Chaudhuri, Sarbajit, 2011. "Job-search and foreign capital inflow — A two sector general equilibrium analysis," Economic Modelling, Elsevier, vol. 28(6), pages 2494-2501.
  35. Guido Menzio & Shouyong Shi, 2008. "Efficient Search on the Job and the Business Cycle, Second Version," PIER Working Paper Archive 09-010, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 28 Feb 2009.
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