AN EQUILIBRIUM SEARCH MODEL WHEN FIRMS OBSERVE WORKERS' EMPLOYMENT STATUS

• 成果类型: Article
• 署名作者: Carrillo-Tudela, Carlos
• 署名单位: University of Leicester
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2009.00538.x
• 发表日期: 2009
• 页码: 485-506
• 关键词: labor-market; unemployment; RECRUITMENT

摘要

This article considers an equilibrium search model, where firms post wages using information on workers' employment status. Earnings differentials between workers of different employment statuses are driven by firms' ability to discriminate workers' reservation wages. I study how these wage policies depend on firms' and workers' characteristics, and how these policies affect the wage distribution. The model delivers new predictions for the amount of wage dispersion that can be generated with search models and provides a better representation of the left tail of the wage distribution in the presence of a legal minimum wage than standard equilibrium search models.