Homogenous Agent Wage-Posting Model with Wage Dispersion

Matej Steinbacher, Matjaz Steinbacher and Mitja Steinbacher ()

MPRA Paper from University Library of Munich, Germany

Abstract: In the paper we test a homogenous agent version of the Montgomery's (1991) non-cooperative wage posting model. The inclusion of intrinsic costs, related to the uncertainty when changing the alternative agents are already using, alters the outcome of the model in two respects: firstly, it significantly prolongs the convergence-time to the equilibrium, and, more importantly, it may lead to the wage dispersion, irrespective of equally-productive-agent proposition, something not present in the model of Montgomery.

Keywords: Job-search model; wage posting; wage dispersion; numerical optimization (search for similar items in EconPapers)
JEL-codes: C15 C73 D83 J31 (search for similar items in EconPapers)
Date: 2009-07
New Economics Papers: this item is included in nep-bec and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:16114

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