Good Jobs Versus Bad Jobs : Theory and Some Evidence
This paper offers a model of the interaction between composition of jobs and labor market regulation. Ex post rent-sharing due to search frictions implies that "good" jobs which have higher creation costs must pay higher wages. This wage differential distorts the composition of jobs, and in the unregulated equilibrium there are too many bad jobs relative to the number of good jobs.
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|Date of creation:||1996|
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