Comments on job market models
We point out that the condition of maximization of the benefit is not Y'(n)=w in general, due to the eventual dependence of the salary w on the employement n. We show that in keynessian models, where the relation between w and n is given, we need to correct the relation between the salary and rent, but in classical models, where we use the benefit to find a demand function, the maximization of the benefit do not permit it. This is a case in wich, regardless the interplay between offer and demand is present, the price and level of interchange of a good (human work) cannot be determined by the intersection of offer and demand functions.
|Date of creation:||06 Jul 2002|
|Date of revision:|
|Note:||Type of Document - LaTeX; prepared on IBM PC; to print on PostScript (first compile with LaTeX); pages: 4 ; figures: None. Here we show that the simplest classical model for the job market is mathematically wrong.|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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