Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search
Damdinsuren E (2021) Universität Bielefeld Working Papers in Economics and Management; 01-2021.
Bielefeld: Bielefeld University, Department of Business Administration and Economics.
Diskussionspapier
| Veröffentlicht | Englisch
Download
wpaper_01_2021.pdf
1.33 MB
Autor*in
Einrichtung
Abstract / Bemerkung
This paper develops a search model with heterogeneous workers, rms, and on-the-job
search. Employed low-skilled workers are allowed to seek better paid jobs at high productivity
rms. Low productivity rms make take-it-or-leave-it wage oers, whereas high productivity
rms use Nash bargaining over wages. There are two important sources of ineciency in
the model besides the well-known classical search externality. First, low-skilled workers do
not have any bargaining power when they are employed at low productivity rms. Second,
the two types of workers are pooled in the same submarket. We demonstrate that lump-sum
transfers paid to workers can internalize these ineciencies. Moreover, both types of rms
may benet from the increase in the supply of low-skilled workers when the productivity
dierence in the two jobs for these workers is large, as a result the overall wage gap among
workers increase. On the contrary, when the productivity dierence is small, the eects
are reversed. Finally, both types of rms emerge in the equilibrium when rms are allowed
to open vacancies in both submarkets. On the one hand, it is attractive for rms to open
vacancies in the low productivity submarket since they pay low wages to workers. On the
other hand, it is also protable for rms to open vacancies in the high productivity submarket
because the probability of jobs being lled with low-skilled workers increase signicantly, even
though the bargained wages of high-skilled workers increase.
Stichworte
On-the-job search;
Nash bargaining;
take-it-or-leave-it;
wage dispersion
Erscheinungsjahr
2021
Serientitel
Universität Bielefeld Working Papers in Economics and Management
Band
01-2021
Seite(n)
48
Urheberrecht / Lizenzen
ISSN
2196-2723
Page URI
https://pub.uni-bielefeld.de/record/2950327
Zitieren
Damdinsuren E. Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search. Universität Bielefeld Working Papers in Economics and Management. Vol 01-2021. Bielefeld: Bielefeld University, Department of Business Administration and Economics; 2021.
Damdinsuren, E. (2021). Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search (Universität Bielefeld Working Papers in Economics and Management, 01-2021). Bielefeld: Bielefeld University, Department of Business Administration and Economics. https://doi.org/10.4119/unibi/2950327
Damdinsuren, Erdenebulgan. 2021. Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search. Vol. 01-2021. Universität Bielefeld Working Papers in Economics and Management. Bielefeld: Bielefeld University, Department of Business Administration and Economics.
Damdinsuren, E. (2021). Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search. Universität Bielefeld Working Papers in Economics and Management, 01-2021, Bielefeld: Bielefeld University, Department of Business Administration and Economics.
Damdinsuren, E., 2021. Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search, Universität Bielefeld Working Papers in Economics and Management, no.01-2021, Bielefeld: Bielefeld University, Department of Business Administration and Economics.
E. Damdinsuren, Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search, Universität Bielefeld Working Papers in Economics and Management, vol. 01-2021, Bielefeld: Bielefeld University, Department of Business Administration and Economics, 2021.
Damdinsuren, E.: Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search. Universität Bielefeld Working Papers in Economics and Management, 01-2021. Bielefeld University, Department of Business Administration and Economics, Bielefeld (2021).
Damdinsuren, Erdenebulgan. Social Optimum, Heterogeneous Workers and Firms in the Labour Market with On-the-Job Search. Bielefeld: Bielefeld University, Department of Business Administration and Economics, 2021. Universität Bielefeld Working Papers in Economics and Management. 01-2021.
Alle Dateien verfügbar unter der/den folgenden Lizenz(en):
Creative Commons Namensnennung 4.0 International Public License (CC-BY 4.0):
Volltext(e)
Name
wpaper_01_2021.pdf
1.33 MB
Access Level
Open Access
Zuletzt Hochgeladen
2021-01-20T14:25:58Z
MD5 Prüfsumme
59d1dd9bdcac73c284f241e03243af0c