LABOR MARKET SEARCH AND SCHOOLING INVESTMENT

• 成果类型: Article
• 署名作者: Flinn, Christopher; Mullins, Joseph
• 署名单位: New York University; Collegio Carlo Alberto
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12108
• 发表日期: 2015
• 页码: 359-398
• 关键词: equilibrium-model; wage dispersion; minimum-wages; job search; unemployment; microfoundation; EMPLOYMENT; EFFICIENCY; enrollment; frictions

摘要

We generalize a search, matching, and bargaining model to allow individuals to acquire productivity-enhancing schooling prior to labor market entry. In general, search frictions and weakness in bargaining position contribute to underinvestment in schooling from an efficiency perspective. Using estimates of a general equilibrium version of the model in which firm vacancy creation decisions are included, we find that minimum wages and schooling subsidies improve aggregate welfare, but have very different welfare impacts across the ability distribution. In particular, policies that maximize the average welfare of workers have strongly negative effects on the welfare of the least able.