Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75743
Authors: 
Gautier, Pieter A.
Year of Publication: 
2001
Series/Report no.: 
CESifo Working Paper 540
Abstract: 
This paper describes a search model with a continuum of workerand job types, transferable utility and an increasing returns to scale contact technology. We apply a second order Taylor expansion to characterize the equilibrium. One third of theincreasing returns in contacts are absorbed by firms and workers being more choosy. Hence, strongly increasing returns in contact rates are consistent with weakly increasing returns in matching. The resulting equilibrium is not efficient. Unemployment benefitscan reduce the loss by serving as a search subsidy. The loss caused by search frictions is higher when worker types are bad substitutes. Numerical simulations of the model show our Taylor expansions to be quite accurate.
Subjects: 
assignment
search
unemployment
Document Type: 
Working Paper

Files in This Item:
File
Size





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