Blumkin, Tomer; Hadar, Yossi; Yashiv, Eran - Institute for the Study of Labor (IZA) - 2005
reservation wages, shifting the labor force towards the more productive firms. The relation between productivity dispersion and UI … policy is mediated by the wage posting policies of firms that take both productivity and policy into account. Optimal UI … policy is shown to crucially depend on the properties of the firm productivity distribution, such as its variance and …