A Search Version of the Roy Model
This paper considers the decisions of workers to search in different labor markets, in analogy to Roy¡¯s model of sectoral selection. In the basic model, a worker can search in one labor market or another but not both. With non-pecuniary benefits, a worker chooses the labor market offering the highest reservation utility level. Conditions for simultaneous search in two markets are also derived under the assumption that workers suffer a reduction in wage offers. Decisions of where to search are relevant to self-selection into sectors and self-selection biases, the formation of interview networks, and generation of overlapping markets.
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| Length: | |
| Date of creation: | 2003 |
| Date of revision: | |
| Handle: | RePEc:nya:albaec:03-08 |
| Contact details of provider: | Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A. Phone: (518) 442-4735 Fax: (518) 442-4736
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| Order Information: | Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A. Web: http://www.albany.edu/economics/research/workingp/index.shtml Email: |
References listed on IDEAS
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- Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December.
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