Efficiency in a search and matching model with participation policy

Adrian Masters

Economics Letters, 2015, vol. 134, issue C, 111-113

Abstract: This note presents a random search and matching model with ex ante heterogeneity in worker productivity. A Social Planner with the power to prevent labor market participation by the least productive is shown to increase economic efficiency. This is true even at the Hosios rule which, under worker homogeneity, implements the constrained efficient allocation.

Keywords: Search; Matching; Efficiency (search for similar items in EconPapers)
JEL-codes: D6 D8 J6 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:134:y:2015:i:c:p:111-113

DOI: 10.1016/j.econlet.2015.07.002

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