Firm productivity dispersion and the matching role of UI policy
By: by Tomer Blumkin, Yossi Hadar, Eran Yashiv.
Contributors: Hadar, Yossi.
Series: Discussion paper ;; no. 1733; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1733
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Manpower policy.; Vocational guidance.; Labor productivity.
Description: "This paper studies optimal UI policy from the perspective of worker assignment to heterogenous jobs in an environment of random matching. Workers react to UI policy through job acceptance decisions; firms react to UI policy through wage posting. There is endogenous assortative matching as a result of the fact that UI policy induces a time profile for reservation wages, shifting the labor force towards the more productive firms. The relation between productivity dispersion and UI policy is mediated by the wage posting policies of firms that take both productivity and policy into account. Optimal UI policy is shown to crucially depend on the properties of the firm productivity distribution, such as its variance and skewness"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/7/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.