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Couples looking for jobs in the same labor market may cause instabilities. We determine a natural preference domain, the domain of weakly responsive preferences, that guarantees stability. Under a restricted unemployment aversion condition we show that this domain is maximal for the existence of...
Persistent link: https://www.econbiz.de/10010547122
In this note we study the National Resident Matching Program (NRMP) algorithm in the US market for physicians. We report on two problems that concern the presence of couples, a feature explicitly incorporated in the new NRMP algorithm (cf. Roth and Peranson, 1999). First, we show that the new...
Persistent link: https://www.econbiz.de/10010547404
Many people are fired from their jobs for poor performance. However, it is difficult to distinguish whether they are fired because they are not well suited for their job (sorting explanation) or because the firms are trying to provide incentives for effort (incentive explanation). This paper...
Persistent link: https://www.econbiz.de/10005130197
In this article, we test a simple version of Becker's (1973) marriage model for wage setting. This model predicts … employer-employee data. Because the structural model implies that the log-wage of workers is the sum of a person … firm effect must exist. Second, the log-wage must be the sum of a person component and of a firm component. The first …
Persistent link: https://www.econbiz.de/10005129815
wage are mixed. The output effects of government consumption and investment shocks are smaller than those of government …
Persistent link: https://www.econbiz.de/10010547365