Efficiency in a search and matching model with endogenous labor participation and different skill groups

Makoto Masui ()
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Makoto Masui: Soka University

Economics Bulletin, 2020, vol. 40, issue 4, 2648-2653

Abstract: This study addresses endogenous labor force participation based on a search and matching model with workers' productivity dispersion within different skill groups. I show that equilibrium vacancy creation can be both excessive and insufficient from the viewpoint of economic efficiency, depending on the relative share of workers in a high-skill group.

Keywords: Search; Matching; Participation; Efficiency; Skill groups (search for similar items in EconPapers)
JEL-codes: J2 J6 (search for similar items in EconPapers)
Date: 2020-10-12
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