EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/33474
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorDanthine, Samuelen_US
dc.date.accessioned2005-05-11en_US
dc.date.accessioned2010-07-07T09:12:05Z-
dc.date.available2010-07-07T09:12:05Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/33474-
dc.description.abstractA quantitative model of two-sided search with ex-ante heterogeneity in both worker and entrepreneurial skills is proposed. It is possible to characterize both the competitive equilibrium and the optimal solution numerically. The competitive equilibrium is shown to be suboptimal. Less-skilled workers and firms are too selective, not matching with their comparable counterparts. High-types, on the other hand, are not selective enough. The model shows promise as a tool for evaluating the effects of labor policies (and other changes in the economy) on the composition of unemployment and on unemployment duration, as well as on wage distributions. The effect of introducing a simple unemployment insurance scheme is then twofold. First, it increases unemployment by allowing a greater proportion of low types not to match, which decreases output. Second, it decreases mismatch, which has a positive effect on output. It is possible to have a positive effect of unemployment insurance on productivity and find the optimal level of unemployment insurance. Finally, it is shown that assuming risk-neutral workers in this model is not innocuous.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 1572en_US
dc.subject.jelJ63en_US
dc.subject.jelJ65en_US
dc.subject.jelJ31en_US
dc.subject.ddc330en_US
dc.subject.keywordtwo-side searchen_US
dc.subject.keywordheterogeneityen_US
dc.subject.keywordunemploymenten_US
dc.subject.keywordunemployment insuranceen_US
dc.subject.keywordrisk aversionen_US
dc.titleTwo-sided search, heterogeneous skills and labor market performanceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn485624540en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
485624540.pdf341.16 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.