Mismatch and Wage Posting
Résumé
This paper provides a wage posting model of the labor market in which workers' search strategies are pure. To that end, the persistency of vacant jobs results from a mismatch problem, not a pure coordination problem. Since firms cannot commit to an output cutoff lower than the announced wage, laissez-faire is inefficient. Under a binding condition however, public policy can restore market efficiency by associating a minimum wage with a layoff tax.
Domaines
Economies et financesOrigine | Fichiers produits par l'(les) auteur(s) |
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