Selection upon Wage Posting
We discuss a model of a job market where firms announce salaries. Thereupon, they decide through the evaluation of a productivity test whether to hire applicants. Candidates for a job are locked in once they have applied at a given employer. Hence, such a market exhibits a specific form of the bargain-then-ripoff principle. With a single firm, the outcome is efficient. Under competition, what might be called "positive selection" leads to market failure. Thus our model provides a rationale for very small employment probabilities in some sectors.
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- Dale T. Mortensen & Christopher A. Pissarides, 1994.
"Job Creation and Job Destruction in the Theory of Unemployment,"
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- In-Koo Cho & David M. Kreps, 1997.
"Signaling Games and Stable Equilibria,"
Levine's Working Paper Archive
896, David K. Levine.
- Marc Blatter & Samuel Muehlemann & Samuel Schenker, 2008.
"The Costs of Hiring Skilled Workers,"
Economics of Education Working Paper Series
0015, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Nov 2009.
- Robert Shimer, 2005.
"The Assignment of Workers to Jobs in an Economy with Coordination Frictions,"
Journal of Political Economy,
University of Chicago Press, vol. 113(5), pages 996-1025, October.
- Robert Shimer, 2001. "The Assignment of Workers to Jobs In an Economy with Coordination Frictions," NBER Working Papers 8501, National Bureau of Economic Research, Inc.
- repec:adr:anecst:y:2033:i:71-72 is not listed on IDEAS
- Barron, John M & Bishop, John & Dunkelberg, William C, 1985. "Employer Search: The Interviewing and Hiring of New Employees," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 43-52, February.
- Kevin Lang & Michael Manove, 2003. "Wage announcements with a continuum of worker type," Annals of Economics and Statistics, GENES, issue 71-72, pages 189-219.
- Robert E. Hall & Alan B. Krueger, 2008. "Wage Formation between Newly Hired Workers and Employers: Survey Evidence," Working Papers 1095, Princeton University, Department of Economics, Industrial Relations Section..
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