Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82848
Authors: 
Eriksson, Stefan
Gottfries, Nils
Year of Publication: 
2003
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2000:3
Abstract: 
We formulate an efficiency wage model with on-the-job search where wages depend on turnover and employers may use information on whether the searching worker is employed or unemployed as a hiring criterion. We show theoretically that ranking by employment status affects both the level and the persistence of unemployment and numerically that these effects are substantial. More prevalent ranking in Europe compared to the US - because of more rigid wage structures etc. - could potentially help to explain the high and persistent European unemployment.
Subjects: 
Efficiency wage
Turnover
On-thejob search
Persistence
Ranking
Unemployment
Unions
JEL: 
E24
J64
Document Type: 
Working Paper

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