A model of search and matching with PES intermediation

Twisha Chatterjee ()
Additional contact information
Twisha Chatterjee: University at Buffalo, SUNY

Eurasian Economic Review, 2018, vol. 8, issue 1, No 1, 36 pages

Abstract: Abstract The paper is an extension of Morgan (A model of search, coordination and market segmentation. Department of Economics, SUNY-Buffalo Working paper, 1998). It shows that introducing a specialist matching intermediary, a public employment exchange, can improve the efficiency of the market under certain conditions. Coupled with search costs and incentive compatible lumpsum membership fees, agents participate in only one of the disjoint segments generated in such markets. A complete description is provided of the equilibrium matching of agents. In equilibrium, agents separate according to type into different segments viz., an informal economy, an economy operated by the intermediary, and an economy populated by relatively highly skilled agents only. Welfare properties of the equilibrium are provided.

Keywords: Public employment service; Assortative matching; Intermediation; Social welfare (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40822-017-0084-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurase:v:8:y:2018:i:1:d:10.1007_s40822-017-0084-y

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40822

DOI: 10.1007/s40822-017-0084-y

Access Statistics for this article

Eurasian Economic Review is currently edited by Dorothea Schäfer

More articles in Eurasian Economic Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().