EconPapers    
Economics at your fingertips  
 

Wage Posting Without Full Commitment

Matthew Doyle () and Jacob Wong ()

No 2008-01, School of Economics Working Papers from University of Adelaide, School of Economics

Abstract: Wage posting models of job search typically assume that firms can commit to paying workers the posted wage. This paper investigates the consequences of relaxing this assumption. Under ``downward'' commitment, firms can commit only to paying at least their advertised wage. We show that wage posting is always an equilibrium, although in special cases other equilibria can exist. Surprisingly, the wage posting equilibrium in our economy is identical to the equilibrium when firms can commit to paying exactly their posted wage. When firms cannot even commit to paying at least their advertised wage, equilibrium exhibits job auctions with wage dispersion which generally is not constrained efficient.

JEL-codes: E24 J64 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2008
New Economics Papers: this item is included in nep-bec, nep-dge, nep-lab and nep-mac
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://media.adelaide.edu.au/economics/papers/doc/wp2008-01.pdf (application/pdf)

Related works:
Journal Article: Wage Posting Without Full Commitment (2013) Downloads
Working Paper: Wage Posting Without Full Commitment (2008) Downloads
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:adl:wpaper:2008-01

Access Statistics for this paper

More papers in School of Economics Working Papers from University of Adelaide, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Nicolas Groshenny ().

 
Page updated 2023-02-06
Handle: RePEc:adl:wpaper:2008-01