HIRING STANDARDS AND LABOUR MARKET CLEARING

Ekkehart Schlicht ()

Metroeconomica, 2005, vol. 56, issue 2, pages 263-279

Abstract: Consider a labour market with heterogeneous workers. When recruiting workers, firms set a hiring standard and make a wage offer. A more demanding hiring standard necessitates a better wage offer in order to attract enough qualified applicants. As a result, an efficiency wage effect is obtained. An equilibrium emerges which does not clear the labour market. The wage level depends on structural characteristics of labour supply, such as heterogeneity and mobility of the workers, but-in contrast to other efficiency-wage models-not on the level of unemployment and is, thus, compatible with increasing unemployment as observed, e.g. in Germany. Copyright Blackwell Publishing Ltd 2005.

Date: 2005
View citations in EconPapers

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2005&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Hiring Standards and Market Clearing
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:metroe:v:56:y:2005:i:2:p:263-279

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0026-1386

Access Statistics for this article

Metroeconomica is edited by Heinz D. Kurz and Neri Salvadori

More articles in Metroeconomica from Blackwell Publishing
Series data maintained by Christopher F. Baum ().