Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33474 
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dc.contributor.authorDanthine, Samuelen
dc.date.accessioned2005-05-11-
dc.date.accessioned2010-07-07T09:12:05Z-
dc.date.available2010-07-07T09:12:05Z-
dc.date.issued2005-
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
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x1572en
dc.subject.jelJ63en
dc.subject.jelJ65en
dc.subject.jelJ31en
dc.subject.ddc330en
dc.subject.keywordtwo-side searchen
dc.subject.keywordheterogeneityen
dc.subject.keywordunemploymenten
dc.subject.keywordunemployment insuranceen
dc.subject.keywordrisk aversionen
dc.titleTwo-sided search, heterogeneous skills and labor market performance-
dc.type|aWorking Paperen
dc.identifier.ppn485624540en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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