EconPapers    
Economics at your fingertips  
 

Hiring Standards and Market Clearing

Ekkehart Schlicht ()

No 481, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Consider a labour market with heterogeneous workers. Firms recruit workers by fixing a hiring standard and a wage offer simultaneously. 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. The model is contrasted with prevailing efficiency wage theories, and policy implications are also discussed.

Keywords: hiring standards; efficiency wages; wage formation; unemployment (search for similar items in EconPapers)
JEL-codes: J31 J41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2002-04
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp481.pdf (application/pdf)

Related works:
Journal Article: HIRING STANDARDS AND LABOUR MARKET CLEARING (2005) Downloads
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:iza:izadps:dp481

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA)
Address: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Contact information at EDIRC.
Series data maintained by Mark Fallak ().

 
Page updated 2014-11-02
Handle: RePEc:iza:izadps:dp481