Compensating Wage Differentials, Workers' Heterogeneity and Imperfect Competition in the Labor Market

Xavier Wauthy and Yves Zenou

No 1997003, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: In this paper, we explore a simple model which focuses on the joint role of workers' heterogeneity and imperfect competition in the endogeneous formation of labor market equilibria. We show that, compared to the competitive case, imperfect competition leads to a misallocation of workers and to an increase of the level of unemployment when the population is heterogeneous. When workers are all identical, competitive and Nash allocations become the same.

Keywords: perfect versus imperfect competition in the labor market; heterogeneous versus homogeneous workers (search for similar items in EconPapers)
Pages: 12
Date: 1997-02-01
New Economics Papers: this item is included in nep-lab
References: Add references at CitEc
Citations:

Downloads: (external link)
http://sites.uclouvain.be/econ/DP/IRES/9703.ps (application/postscript)

Related works:
Working Paper: Compensating wage differentials, workers’ heterogeneity and imperfect competition in the labor market (1997)
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: https://EconPapers.repec.org/RePEc:ctl:louvir:1997003

Access Statistics for this paper

More papers in LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Virginie LEBLANC ().