Job competition, product market competition and welfare
This paper presents a model of labour supply determination under job competition. In the presence of a positive rate of unemployment and increasing returns to labour, the level of labour supply chosen by each individual lies above the one that, at the offered wage, maximises utility. There is a unique strictly positive degree of job competition that is consistent with the optimal allocation. If labour supply is upward-sloping, increasing job competition raises the equilibrium level of activity and, when job competition causes production to exceed its optimal level, reducing output market competition leads to a welfare improvement.
|Date of creation:||14 Dec 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Euwals, Rob & van Soest, Arthur, 1999.
"Desired and actual labour supply of unmarried men and women in the Netherlands,"
Elsevier, vol. 6(1), pages 95-118, March.
- Euwals, R.W. & van Soest, A.H.O., 1996. "Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands," Discussion Paper 1996-23, Tilburg University, Center for Economic Research.
- Moen, Espen R, 1999. "Education, Ranking, and Competition for Jobs," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 694-723, October.
- Dixon, Huw David & Rankin, Neil, 1994.
"Imperfect Competition and Macroeconomics: A Survey,"
Oxford Economic Papers,
Oxford University Press, vol. 46(2), pages 171-99, April.
- Dixon, Huw David & Rankin, Neil, 1992. "Imperfect Competition and Macroeconomics: A Survey," CEPR Discussion Papers 636, C.E.P.R. Discussion Papers.
- Dixon, H. & Rankin, N., 1991. "Imperfect Competition and Macroeconomics: a Survey," The Warwick Economics Research Paper Series (TWERPS) 387, University of Warwick, Department of Economics.
- Francis Green, 2001. "It's Been A Hard Day's Night: The Concentration and Intensification of Work in Late Twentieth-Century Britain," British Journal of Industrial Relations, London School of Economics, vol. 39(1), pages 53-80, 03.
- repec:oup:qjecon:v:103:y:1988:i:3:p:441-63 is not listed on IDEAS
- Silvestre, Joaquim, 1993.
"The Market-Power Foundations of Macroeconomic Policy,"
Journal of Economic Literature,
American Economic Association, vol. 31(1), pages 105-41, March.
- Silvestre, J., 1991. "The Market-Power Foundations of Macroeconomic Policy," Papers 374, California Davis - Institute of Governmental Affairs.
- repec:oup:qjecon:v:118:y:2003:i:3:p:879-907 is not listed on IDEAS
- Costa, Dora L, 2000.
"The Wage and the Length of the Work Day: From the 1890s to 1991,"
Journal of Labor Economics,
University of Chicago Press, vol. 18(1), pages 156-81, January.
- Dora L. Costa, 1998. "The Wage and the Length of the Work Day: From the 1890s to 1991," NBER Working Papers 6504, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:35410. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.