Do good workers hurt bad workers-or is it the other way around&quest
Espen Moen ()
International Economic Review, 2003, vol. 44, issue 2, 779-800
Abstract:
I study the effect of worker heterogeneities on wages and unemployment in a directed search model. A worker's productivity in a given firm depends both on his type and on a worker-firm specific component. Firms advertise unconditional wage offers only. The resulting equilibrium is inefficient, with a too high wage premium for high-type workers, and too few high-type jobs. This reduces the welfare of high-type workers. My findings contrast with the findings in the literature on labor market segmentation, where it is argued that the existence of high-type workers forces down wages and reduces welfare for low-type workers. Copyright 2003 By The Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ier:iecrev:v:44:y:2003:i:2:p:779-800
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