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Efficiency in a matching model with heterogeneous agents : too many good or bad jobs?

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dc.creator Blázquez, Maite
dc.creator Jansen, Marcel
dc.date 2003
dc.date.accessioned 2013-10-16T07:09:20Z
dc.date.available 2013-10-16T07:09:20Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20204
dc.identifier ppn:377473693
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20204
dc.description This paper analyses the efficiency of the equilibrium allocation in a matching model with two types of workers and jobs. The basic assumption is that high-skill workers can perform both skilled and unskilled jobs, while low-skill workers can only perform unskilled jobs. Our first result shows that the equilibrium with ex-post bargaining is never efficient. Second, under Hosios? (1990) condition we show that high-skill workers are under-valued in equilibrium, while the opposite holds for low-skill workers. Firms therefore tend to create too few unskilled jobs, resulting in a suboptimally high unemployment rate for low-skill workers. We show that these results generalize to environments with more types of agents and different production technologies. Finally, in an extension we derive a tax scheme that restores efficiency and we show how workers? bargaining strength affects unemployment and skill-mismatch.
dc.language eng
dc.relation IZA Discussion paper series 968
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject D61
dc.subject C78
dc.subject J64
dc.subject ddc:330
dc.subject matching
dc.subject ex post bargaining
dc.subject heterogeneity
dc.subject efficiency
dc.subject Arbeitsmarkttheorie
dc.subject Matching
dc.subject Qualifikation
dc.subject Verhandlungstheorie
dc.subject Hochqualifizierte Arbeitskräfte
dc.subject Ungelernte Arbeitskräfte
dc.subject Allokationseffizienz
dc.subject Theorie
dc.title Efficiency in a matching model with heterogeneous agents : too many good or bad jobs?
dc.type doc-type:workingPaper


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