The model has equilibria in which firms post different wages.
Higher wages attract more able workers on average.
For a given posted wage, there may be an interval of worker productivities such that both the worker and the firm are satisfied with the match. Hence, a worker's wage reflects luck as well as skill. Before downloading any of the electronic versions below you should read our statement on copyright . Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.