Gautier, Pieter (contributor); Teulings, Coen N. (contributor) - 2005
We characterize the equilibrium of a search model with a continuum of job and worker types, wage bargaining, free entry … of vacancies and on-the-job search. The decentralized economy with monopsonistic wage setting yields too many vacancies … simple relations between the losses in production due to search frictions and wage differentials on the one hand and …