Boeri, Tito; Burda, Michael C. - Institute for the Study of Labor (IZA) - 2008
in which wages are set according to an individualised
bargaining process. As a result, some labour markets are "closed …" in that
the highest match surplus attainable in these local labour markets is lower
than the reservation utility of the … worker. Individuals having skills corre-
sponding to closed labour markets are involuntarily non-employed as they
are not …