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We develop a life-cycle model of the labor market in which different worker-firm matches have different quality and the assignment of the right workers to the right firms is time consuming because of search and learning frictions. The rate at which workers move between unemployment, employment...
Persistent link: https://www.econbiz.de/10011262700
In many search models of the labor market, unemployment insurance (UI) is conveniently interpreted as the value of leisure or home production and is, therefore, treated as a parameter. However, in reality, UI has to be funded through taxation that might be distortionary. In this paper, I analyze...
Persistent link: https://www.econbiz.de/10011268094
Often an increase in the minimum wage is accompanied by a reduction in the capital tax. This paper analyzes the effects of interactions between the minimum wage and the capital tax in the general equilibrium framework. The analysis is conducted in an inter-temporal search model in which firms...
Persistent link: https://www.econbiz.de/10005085504
This paper analyses a matching model of the marriage market with directed, on-the-job search. Everyone is born attractive but "matures" according to a Poisson process into unattractiveness. Marriages between equally attractive people are stable but mixed marriages are not. The implied patterns...
Persistent link: https://www.econbiz.de/10005069638
We study equilibrium prices and trade volume in a market with several identical buyers and a seller who commits to an inventory and then offers goods sequentially. Prices are determined by a strategic costly bargaining process with a random sequence of proponents. A unique subgame perfect...
Persistent link: https://www.econbiz.de/10005009766
platform is high or no agents invest and use of the platform is low. The high-use equilibrium can be implemented if commitment …-up, thus implementing the low-investment equilibrium. As a result, governance structures necessary to achieve commitment will …
Persistent link: https://www.econbiz.de/10005090956
. In absence of commitment, it identifies simple self-enforcing mechanisms that implement social optima for a typical …
Persistent link: https://www.econbiz.de/10005090995
possible commitment. (Copyright: Elsevier) …
Persistent link: https://www.econbiz.de/10005069627
We consider a dynamic moral hazard economy inhabited by a planner and a population of privately informed agents. We assume that the planner and the agents share the same discount factor, but that the planner cannot commit. We show that optimal allocations in such settings solve the problems of...
Persistent link: https://www.econbiz.de/10005069690
This paper modifies the standard one-sector stochastic growth model in an effort to explain the observed low procyclicality of the aggregate real wage in the US. The modifications include labor market matching with Nash-bargaining of wages and preferences as introduced in the literature by...
Persistent link: https://www.econbiz.de/10004970377