Uren, Lawrence; King, Ian; Basov, Suren - Society for Economic Dynamics - SED - 2011
. Worker abilities are selected from a general distribution, subject to some weak regularity requirements, and the firms direct … function. This function has constant returns to scale and two new terms, which are functions of the underlying distribution of … worker productivities: the percentage of workers who are employable, and a measure of heterogeneity (kappa). The equilibrium …