Price of Information Asymmetry in Labor Market: Competitive Equilibrium Wage and Total Surplus Loss

Heyin Hou ()
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Heyin Hou: Southeast University, School of Economics and Management

A chapter in Proceedings of the 2024 5th International Conference on Management Science and Engineering Management (ICMSEM 2024), 2024, pp 586-594 from Springer

Abstract: Abstract Information asymmetry about workers’ productivity between workers and employers usually exists and produces total surplus loss in labor market. A new concept — the price of information asymmetry (PoIA) — is proposed to measure the total surplus loss caused by information asymmetry in labor market. Comparative static analysis of the PoIA with respect to key coefficients brings forth a wealth of (but may conflicting) measures to reduce the total surplus loss in labor market.

Keywords: Labor Market; Total Surplus; Competitive Equilibrium; Price of Information Asymmetry (PoIA) (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-570-6_58

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