Globalization and the market for high-ability managers

Carl Davidson and Steven Matusz

International Journal of Economic Theory, 2014, vol. 10, issue 1, 107-124

Abstract: type="main" xml:lang="en">

We add heterogeneous workers and search-generated unemployment to a Melitz-style economy. Depending on their productivity, firms choose to search exclusively for one of two types of skilled workers, or possibly undertake a broad search for either. Increased globalization changes the cost–benefit calculus of different search strategies and therefore alters the range of firms willing to implement the alternative search strategies.

Date: 2014
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