Efficiency in a Search and Matching Model with Training Costs
This paper studies the efficiency of the search and matching model with training costs. I incorporate productivity enhancing firm-specific skill training into the search and matching model of Pissarides (2000). I demonstrate that while the decentralized economy can be efficient if training costs are not sunk at the time of wage determination, the decentralized economy is not efficient due to a hold-up problem if training costs are sunk.
|Date of creation:||Mar 2011|
|Date of revision:|
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- Christopher Pissarides, 2007.
"The unemployment volatility puzzle: is wage stickiness the answer?,"
LSE Research Online Documents on Economics
4460, London School of Economics and Political Science, LSE Library.
- Ch. Pissarides., 2011. "The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 1.
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98-14, Massachusetts Institute of Technology (MIT), Department of Economics.
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17719, University Library of Munich, Germany, revised 08 Oct 2009.
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2005 Meeting Papers
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- Hungerbuhler, Mathias, 2007. "Tax progression and training in a matching framework," Labour Economics, Elsevier, vol. 14(2), pages 185-200, April.
- Naoki Shintoyo, 2008. "Creation of jobs and firm-sponsored training in a matching model of unemployment," Journal of Economics, Springer, vol. 93(2), pages 145-176, March.
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- Malcomson, J.M., 1997.
"Contracts, hold-up and labor markets,"
Discussion Paper Series In Economics And Econometrics
9703, Economics Division, School of Social Sciences, University of Southampton.
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