A model of globalization and firm-worker matching: How good is good enough?

Carl Davidson () and Steven Matusz

International Review of Economics & Finance, 2012, vol. 23, issue C, 5-15

Abstract: More able workers are more productive than less able workers, but their outside opportunities also allow them to command a higher wage. As a result, it is not clear which workers firms will prefer to hire. Moreover, with worker heterogeneity and labor market frictions, firms may not always get their first choice of worker. We investigate circumstances under which the second best is good enough, and show how globalization can either narrow or broaden the conditions under which second best is acceptable.

Keywords: Globalization; Worker-firm mismatch; Heterogeneity (search for similar items in EconPapers)
JEL-codes: F12 F16 J63 J64 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:23:y:2012:i:c:p:5-15

DOI: 10.1016/j.iref.2011.10.002

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