Simultaneous search with heterogeneous firms and ex post competition
By: by Pieter Gautier, Ronald Wolthoff
Contributors: Wolthoff, Ronald
Series: Discussion paper -- no. 2056; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 2056
Publisher: IZA
Published: 2006
Place of publication: Bonn, Germany
Language: eng
Format: [electronic resource] /
Subjects: Industrial productivity; Wages
Description: "We study a search model where workers can send multiple applications to high and low productivity firms. Firms that compete for the same candidate can increase their wage offers as often as they like. We show that there is a unique equilibrium where workers mix between sending both applications to the high and both to the low productivity sector. Efficiency requires however that they apply to both sectors because then the coordination frictions are lowest. For many configurations, the equilibrium outcomes are the same under directed and random search. Allowing for free entry creates a second source of inefficiency"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 4/3/2006.

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